The British dairy sector is facing significant challenges with potential declines in milk production.
- A survey reveals that 9% of dairy farmers in Britain may cease milk production in the next two years.
- An additional 23% of farmers are uncertain about continuing their operations.
- Soaring costs and regulatory demands are primary concerns for farmers.
- There is an urgent need for resilient and collaborative supply chains to support the dairy industry.
The British dairy industry is confronting a challenging period as a recent survey conducted by the National Farmers Union indicates that 9% of farmers are likely to cease milk production within the next two years. Additionally, a significant 23% of farmers are uncertain about the future sustainability of their operations.
A combination of escalating costs and regulatory pressures is contributing to the uncertainty within the industry. Specifically, 84% of farmers have expressed concerns over rising feed prices, while 83% are worried about increasing energy costs. Moreover, 87% cite the impact of government regulations as a significant challenge to their operations.
Michael Oakes, Chair of the NFU dairy board, commented on the situation, highlighting the severe inflationary pressures combined with prices that fall below production costs, thus threatening the resilience of British dairy businesses. He stressed the necessity for robust and cooperative supply chains, underscoring the importance of reversing the current ‘boom or bust’ trend.
Oakes further explained that while new regulations on contracts, expected later this year, aim to create fairer and more transparent supply chains, they are not a definitive solution. He emphasised that continued collaboration with the government is crucial to develop the necessary frameworks supporting the production of high-quality, sustainable food in the face of increasing global demand.
The British dairy industry requires immediate strategic support to navigate the current economic and regulatory challenges effectively.
