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Dairy Farmers Take Yet Another Hit – On Their Bottom Line

03 Sep

Many thanks to a supportive Best Of Welsh & Border producer who has kindly sent this latest news through to me.

3ppl milk price cut for all First Milk members – from 1st October   (1st September 2014)

It was black Monday for First Milk members most of whom were no doubt shell shocked to learn of this  latest 3ppl across the board  price cut.  First Milk have not dressed up the background to the latest cut simply to state it gives them a milk buying price in line with current market returns.

In terms of its milk buying competitors the gap between First milk and others is certainly widening but they have to do what they have to do in an attempt to balance the books.  One thing is certain some of their members have no alternative but to either buckle up and accept the cut or exit the industry because changing milk buyers is not an option.

So in the space of 5 months First Milk’s liquid contracted producers have seen 7.4ppl knocked of their milk price equivalent to an eye watering 30% drop to give a 1st October standard litre price of only 25.1ppl.

For its cheese contracted producers it’s been a case of five consecutive cuts totalling 6.4ppl to produce a new 1st October standard litre price of 26.1ppl.

It’s for First Milk members to ask questions and comment but no doubt their initial reaction will be the same as the thud of his jaw hitting the floor could be heard.

This is starting to look like an industry plunging into crisis at speed and whilst only one month ago in this column it stated that some producers would be on 25p before Xmas he never imagined it would be by 1st October.

There are now suggestions that some could receive a milk price below 22p by January and even 20ppl has been mentioned.  It’s grim and as one recognised EU guru commented to us today “It’s going to be a blood bath with casualties.”

I cannot believe dairy farmers are constantly being hit like this. Anyone would think that Wales didn’t actually want Welsh milk and can’t be bothered to support and back its farmers. This leaves me speechless.  Dairy farmers do make contact with your AMs and get them working much harder for you.

 
 

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  1. dairy farmer

    September 4, 2014 at 8:52 am

    Thanks for highlighting this latest slap in the face for dairy farmers.
    At least you are there backing us, it’s just a pity our government and food department cannot offer the support to us that you do.
    Assume that wag food have told you which food producers are supplying the nato conference and what the menus are?

     
  2. Parrot

    September 4, 2014 at 9:51 am

    Wish there was more we could do to help dairy farmers.
    But assume you are joking with asking if wag food have told us what Welsh food producers are supplying Nato conference or the menu come to that. A few producers have asked us over last few days we’ve asked and been told information is not known.
    Pardon me for saying – yet again – that wag food have missed yet another OBVIOUS PR & Marketing opportunity. If you couldn’t have made massive progress on this opportunity to highlight our food producers, then they might as well give up for good. What a disaster.