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.
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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