RABDF Calls for Milk Prices to Reflect Production Costs
24/07/07

The Royal Association of British Dairy Farmers has called for farm-gate milk prices to more urgently reflect changes in production costs. The Association believes that in particular rises in feed costs should be incorporated into all milk prices with immediate effect.

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RABDF vice-chairman David Cotton says: “The fact is that farm-gate milk prices are always lagging behind the costs farmers have to pay out and have been for the last few years. Feed costs have been rising consistently for months now and we anticipate new season feed wheat will sell for over £120/tonne, up almost 50% since April this year. Whilst we appreciate world dairy commodity prices have been rising at an extraordinary rate, the increases have not been getting through to the majority of farmers which is where they are needed most. Consequently, farmers will struggle to absorb any production cost increases.”

He continues: “The unprecedented floods and wet weather suffered over the last few weeks have wiped out many crops and also affected crop quality, which will have major consequences on future feed costs and escalate the situation further. On top of this, many dairy farms have had to house cows and are already using winter feed stocks so even more additional costs are coming into force.”

David adds: “Farmers cannot be expected to live off what might happen in the future. Farm-gate milk prices must reflect production cost changes far more instantaneously. Processors and retailers need to recognise that if they wish to secure the future of all dairy products, they will have to pay more for the milk.”

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