"Tompkins, who is the third generation to run his family's 234-hectare (600-acre) farm in the Vale of York, can produce milk for about 40p a litre from his 500-strong herd of black and white Holstein cows. However, he is being paid only 29p a litre by his milk processor, leaving him operating at a loss, despite trying to run his business as efficiently as possible."
"Margins have always been tight, in an industry where supermarkets have traditionally used low milk prices to tempt shoppers through to door. Tesco, Sainsbury's, Morrisons and Asda are currently charging 1.65 for four pints, which equates to 41p a pint, or 73p a litre. The UK processing industry is dominated by three main players Arla, Muller and First Milk."
Paul Tompkins operates a 234-hectare farm in the Vale of York with a 500-strong herd and can produce milk for about 40p a litre but is paid only 29p a litre by his processor, leaving the business loss-making. His production cost matches the national average, and he estimates losing 1,800 each day and at least 660,000 this year if prices remain. Supermarkets sell milk cheaply (for example 1.65 for four pints), while the UK processing sector is dominated by Arla, Muller and First Milk. The price fall is blamed on global oversupply outstripping demand, squeezing margins and surprising producers.
Read at www.theguardian.com
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