Dairy farmers warned to prepare for tough times ahead

Dairy farmers warned to prepare for tough times ahead

The CLA in the North is advising its dairy farming members to prepare for tough times ahead as dairy companies announce further milk price cuts.

First Milk and Dairy Crest have confirmed reductions to their farmgate milk prices as the Russian trade embargo continues to squeeze the market.

First Milk will be cutting the price for both its liquid and manufacturing pools by 3ppl while Dairy Crest is reducing the price it pays to farmers by 1.75ppl from 1 October.

CLA North Director of Policy & Public Affairs Douglas Chalmers said: “This is a dramatic price cut – possibly the largest monthly drop in a decade – and will come as a major blow to dairy farmers in the region.

“High production levels, depressed world market prices, and the Russian ban on Western food imports have put intense pressure on the UK’s dairy industry and farmers are paying the price.”

The CLA is urging its members to consider spreading resources in coming months to help their business weather the storm ahead.

Mr Chalmers added: “The CLA continues to lobby hard on behalf of dairy farmers to ensure they receive a fair price but the UK market will always be affected by changes to global trading patterns.

“A small diversification project, supplying new markets or looking at alternative uses for parts of their land are examples of solutions that farmers might want to consider to soften the blow of fluctuating milk prices.

“The important point is that dairy farmers should have a “Plan B” in place to help their business survive volatile periods.”