Arizona Tribune - Freshways milk-price cut deepens pressure on UK dairy farms

From December 1, Freshways will pay 29.4p a litre, nearly reversing the combined 9p increase introduced over the previous two months after a hot, dry summer. The company cited weak dairy markets, higher costs and poor returns in the liquid-milk business.

Arla Foods separately reduced its standard price by 0.45p to 40.41p a litre for November, while keeping its organic price at 58.25p. Farmers are accustomed to commodity-price movement, but producers and the National Farmers’ Union said the scale and speed of the Freshways cut was exceptional.

The sector has also faced higher fuel and fertiliser costs and drought-related pressure on feed. Producers said many farms were already receiving less for milk than it cost to produce, leaving little capacity to absorb another reduction.

M.Robinson--AT