News

Another cut in UK farm milk prices

It looks like U.K. dairy producers are going to take another hit. Arla has notified its 3,000 British farmers it will reduce the pay price for milk to 26.84 pence per liter on December 1^st.  Company officials cite the latest 3.1 percent decline at the Global Dairy Trade auction last week as evidence of the ongoing impact of strong global milk supplies and diminished demand.

Another British processor, First Milk is reportedly going to drop their farm milk price to 24.3 ppl for manufacturing grade milk and 23.7 ppl for fluid milk.

The farm milk price in the U.K. has fallen more than 30 percent since April pushing it below the cost of production for many. More than 400 U.K. dairy producers have gone out of business since the slide began.  It is expected the number of dairy farmers in the U.K. will drop below 10,000 within the next month.  There were more than 34,000 dairy farmers in 1996.