Shropshire farmer fears dairy industry 'on brink of collapse'

Rod MacBean, who farms in Aston, near Wem, says farmers face a "grim" future and predicts a lot will quit the industry from February.

It comes despite the National Farmers' Union (NFU) saying dairy farmers are being offered a lifeline in the on-going battle to secure a better deal for the milk they supply.

Farmers are being urged to join forces in the new year to collectively negotiate prices and contracts with major companies. Meetings will be held by NFU officials to urge farmers, including several in Shropshire, to form dairy producer organisations (POs). But Mr MacBean said: "We face a difficult and grim future unless the industry manages to turn itself around in the next six months.

"In 12 months no one will be able to survive if we keep receiving low milk prices. How can farmers survive on 20 or 21p per litre? There are some on 14 or 15p.

"I think we will see a mass exodus from the industry from February.

"There needs to be a bit more discussion between supermarkets and intervention by the government.

There has to be government intervention otherwise there will be no dairy industry in 12 months time."

Michael Oakes, NFU regional dairy board chairman for the West Midlands, which includes Shropshire, said farmers are continuing to struggle as they are still not receiving milk prices that cover their costs.

But despite predicting further tough times for farmers, Mr Oakes said dairy POs could be part of the solution to help them cope with future challenges with milk prices.

Campaign group Farmers For Action (FFA) has also warned of a bleak 2016 for dairy farmers, and revealed protests could continue nationally in the new year if milk prices fall.

Mr MacBean added: "We are being culled by the processing industry and the government, but we are being culled on price not sufficiency."

Market Drayton-based Muller Dairy has recently announced that it is to hold its milk price in January, despite continuing falls in the global dairy market. It is offering 22.35p per litre to non-contract aligned farmers.

Farmers estimate that it costs between 30p and 32p to produce a litre of milk.