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The Milk Demand Increases While Dairy Farmers Are Struggling

How Much Do Farmers Earn

In the UK, the price of milk dairy farmers are paid, is very low, to a point where they are warning that they will go out of business. This came despite the shortage of milk in some supermarkets. According to a statement by the UK’s leading milk processor Freshways states that the drop of £2p per litter was unfortunate, but the decrease came about due to the decrease in trades in pubs and coffee shops. On the other hand, according to farmers like Peter Pratt, the price drop came after he also lost 65% of his crops due to the floods. When it comes to the government, they said that they are looking at the problem and they have classified it as ‘A Matter of Urgency’.

Let’ us not forget that Freshways payments to farmers will be deferred until the 15th of May, said the managing director Bali Niijar. The chairman of the National Farmers Union (NFU), Michael Oakes said that some dairy farmers are vulnerable, especially in this now are we are trying to fight the pandemic combined with this highly volatile situation. The combination of all these factors (not forgetting that a majority of farmers employ a minimum of about five people) has hit hard dairy farmers.

This has caused about a quarter of dairy farmers in the UK to became financially vulnerable due to the falling milk demand and prices. A majority of these farmers are calling for the government to tailor a support plan after the Covid-19 pandemic caused restaurants, hotels, cafes, and canteens to close.

Michael Oakes said that at this moment, about 25% of the businesses are vulnerable to be closed forever. In fact, some businesses in the UK will not open again and need urgent support to stay afloat.

The Food Industry Cuts

The milk processing firms that have been catering to the food industry (service) are now cutting down the prices as dairy farmers have reached the yearly spring season where milk production is at its peak. This means that many UK dairy farmers are operating at a loss. Before the pandemic, these were viable. The government need to hold an emergency meeting to cater to the government.

Dairy farmers are not the only farmers who are facing challenges now, other farmers like those who grow fruits and vegetables are suffering, as well. Also, the red meat industry is dropping as well. The environment secretary, George Eustice released a statement saying, “he has heard the cries of dairy farmers loud and clear, and this is the reason they are suspending the competition rules laws… He also urged farmers to access the loans that are available from their banks so that they can stay afloat during this period.”

Demand

The dairy farmers mentioned that are struggling to access loads or the forms of government supports. According to the UKs’ milk co-operative Arla Foods mentioned that since they experienced a substantial surge in demand from customers, they succeeded in increase the supply of milk in supermarkets. The Defra spokesman mentioned that they are aware of the need to redirect products from the hospitality industry back to the retail market, and they are taking this as a matter of urgency. One idea or option that could hold the key to fair distribution and shake up in value and profit, is a leading company in suppliers of milk machines  Fullwood Packo.

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