A warning is being sounded by dairy farmers that going out of business is on the cards for them since the price they get for milk has dropped, even though the supermarkets are seeing shortages. Freshways the main milk processor in the UK, said that the two pence per litre cut was ‘unfortunate but had been caused by the decrease in trade with pubs and cafes. Peter Pratt, a farmer in Staffordshire, said that prior to this he lost a staggering 65% of his crops due to flooding. The government has indicated that the problem is being handled and is viewed as “a matter of urgency”.
There is also going to be a delay until 15 May of payments from Freshways to farmers, following this “excessive decline”, said Bali Nijjar, the managing director. The chairman of the National Farmers Union (NFU), Michale Oakes, has noted that there are dairy farmers who are “particularly vulnerable” and that the situation is indeed, “highly volatile”. Mr Pratt, mentioned earlier who runs an arable and beef farm with 6 employees has said that the family business has been “hard hit”.
Due to the falls in milk demand as well as prices, 25 per cent of UK dairy framers are now in a financially unviable position, according to the National Farmers’ Union. These farmers are looking for government support due to the pandemic causing the closure of coffee shops restaurants, hotels, canteens, and so forth.
Michael Oakes, the chair of the union talked of the 25 per cent of businesses that are currently not viable and described them as looking over the face of a cliff and not seeing any support for them. Herringbone parlour.
The milk processors that catered to the food-service market in normal times have been decreasing both their orders and …