Rising number of dairy farms 'likely' to stop producing milk, claims NFU survey
It's claimed high costs, and the low price of milk, is putting the industry at risk
Last updated 29th Jun 2024
Dairy farming in the south west is at risk - according to the National Farmers Union.
A survey by the National Farmers Union, has found nearly 1 in 10 producers think they're likely to stop by 2025 because of the cost of food, energy and investment needed to keep their farms going.
They spoke to nearly 600 dairy farmers, including those right here in the West Country, and they found 9% of producers are planning to bow out of the industry by 2025, up from 7% on last year's statistics.
A further 23% said they were "unsure" if their business would continue producing milk beyond 2025.
These stats are being blamed on the high cost of technology, the cost of living and maintenance - and the surplus of milk here in Britain, which is currently driving the cost of milk down - sometimes at below the price to produce it.
The NFU's survey found:
- 9% of producers plan to bow out of the industry by 2025, with a further 23% 'unsure' if they will continue after this date
- 87% of dairy farmers who responded said they are concerned about the impact of government regulation
- Feed prices (84%), energy prices (83%) and cash flow and profitability (80%) are other key factors that would curtail milk supplies
- 91% said the main factor to dairy farmers increasing milk production would be the scale of investment needed for things like suitable slurry storage
NFU South West regional dairy board chair Stephen Dark, who farms in Cornwall and represents farmers across the region, said: “Obviously dairy farmers are concerned at present because of the current low milk price with many receiving less than the cost of production.
“With the majority needing to invest in infrastructure to comply with current slurry and the forthcoming air quality regulations, an improvement in returns is essential for farmers to have the confidence to commit.
“The dairy processors and retailers need to be careful not to squeeze the industry too far because a consequence of the price being too low for a considerable period of time will see their milk pools diminish. This can be seen in the results of the survey as potentially up to 31% could quit production within the next two to three years.”
NFU dairy board chair Michael Oakes said: “It’s clear that significant inflationary pressures combined with below cost of production prices are continuing to put the resilience of British dairy farming businesses under threat. We are now facing a crisis of confidence among Britain’s dairy farmers.
“The results of this survey show that, now more than ever, we need resilient and collaborative dairy supply chains. It’s vital we reverse this trend of boom or bust and invest in our supply chains. New industry-wide regulation on contracts, expected to be introduced later this year, must support fairer, more transparent and accountable supply chains. But regulation isn’t a silver bullet.
“With increasing global demand for British dairy, we know that the long-term future is bright for our sector. To ensure we maximise this potential, it’s imperative that government continues to work with us to ensure we have the right environmental, regulatory and trade framework in place to support the production of high quality, nutritious and sustainable food.”
You can find about funding for farmers, growers and land managers on the Gov.uk website.
You can visit the Royal Association of British Dairy Farmers here.
You can visit the NFU here.