Latest update on the dramatic downturn in Dairy

It’s those processors supplying the food service, schools, universities, restaurants, coffee shops, pubs etc who have seen their order books battered and cash flow predictions torpedoed.

The picture is changing daily and at an unbelievable speed, for example in the past 4 days cream values have dropped by 20p kg to between 80 to 85p a deficit of almost 2ppl to a processor.

Yew Tree Dairy have reported sales of Polybottle cream for them have dropped by a whopping 95%!!!
Numerous organisations have issued press releases basically calling for government support/financial aid to assist badly affected dairy farmers, in what is a rapidly deteriorating situation.

The common denominator is a request for government to put its hands in its pockets asap. The Royal Association of British Dairy Farmers (RABDF) estimate around 300 dairy farmers producing around 1 million litres a day, should be eligible for its proposed short-term package. This to be targeted at those who are experiencing significant drops in their ex farmgate milk price and/or having to dispose of unwanted milk their purchaser will or cannot collect from their farm.
The RABDF’s proposal suggests farmers be paid up to a standard litre milk price of 25ppl, with farmers paid by Government via their monthly milk cheque.

One question Ian has is whether the public will view dairy farmers as a priority case for financial support? For sure ahead of them in the queue as far as DEFRA are concerned will be horticulture.  

It won’t be easy to handle the PR supporting why Government are justified in paying farmers to dump milk at a time food banks are desperately needed, and some households are struggling to feed themselves. Ian’s view is it’s a dangerous area to go down and should be a last resort.