Farming News - Outlook bleak as Arla cuts milk prices

Outlook bleak as Arla cuts milk prices


The biggest milk co-operative in the UK, Arla, has today announced another cut to the price it pays its UK members by 0.80ppl* taking it to 23.01ppl.

The cut is a further knock for the industry, with the NFU admitting on Friday that the outlook for dairy is “Bleak.” NFU dairy board chair Rob Harrison said, “The market outlook for the rest of this year and into 2016 is not positive so we’re in for an extremely difficult autumn and winter. I’ve spoken to hundreds of dairy farmers at the Royal Welsh Show, Market Drayton and Bridgewater recently who are questioning their future in the industry. Their clear message is that we must remain united.”

Echoing French government ministers, who highlighted the global nature of the problems facing dairy farmers whilst announcing emergency measures to protect the country’s producers, who have mounted desperate protests this week, Harrison said “We know this isn’t a UK problem alone - dairy farmers across the world are suffering from milk prices far below the cost of production – we’ve seen protests in France and milk being thrown away in Canada and the US.”

The NFU chair, who met with Farming minister George Eustice last week, said he had appealed for help from the government. On Friday he reiterated, “We desperately need the Government’s help to ensure a fully functioning and fair dairy supply chain. Now is the time for action - just this week we’ve seen the French Government provide a list of support measures and financial backing to help their farmers through this difficult period.”

Harrison said the union will continue to meet with retailers, processors and banks to find a solution to try and find solutions to problems farmers are facing and ensure that actors up and down the supply chain remain abreast of the situation.

He said, “With the outlook bleak for the foreseeable future I’d call on fellow farmers to talk to their banks, feed merchants, suppliers and business consultants now, before things get far worse, and utilise the resources available at AHDB Dairy to help ride this storm out as best we can. Farmers need to speak to their milk buyers to ensure open and honest communication on the market and future prospects – rather than sit back and wait for another milk price announcement. We need the industry and AHDB to get out and promote British dairy products.

“There is no magic lever to pull that will make it all better. However, that doesn’t mean we should stop trying as organisations and as individuals. This is why the NFU is working in coalition with the FFA, TFA and others to help signpost help for the short term and find agreed solutions for the long term. We all want to be part of a growing successful dairy industry but the next 12 months is going to be incredibly tough. We urge farmers to face up to those difficult decisions and not wait in hope for things to improve.”