Fears of exodus from Shropshire dairy farming industry

Shropshire dairy farmers are predicting an "exodus" from the sector unless urgent action is taken to address the £330 million gap between the price paid for milk and the costs of producing it.

The Cost of Milk Production report, published last week, revealed that British dairy farmers are, on average, losing more than three pence on every litre of the 11 billion litres of milk they produce every year.

This figure produces a £330 million gap between production costs and the price received at the farm gate.

Now county farmers and members of the NFU West Midlands are calling for action to increase milk prices in a bid to save their industry.

Shropshire dairy farmer Paul Dutton, from Calverhall, near Whitchurch, said the report highlighted the disparity in the sector and that it was in everyone's interests to safeguard dairy farming.

Mr Dutton said: "These alarming figures must reinforce the argument that the security of domestic supply of dairy products cannot be taken for granted.

"When our accountants have completed this year end, the cold reality will be an even greater exodus from the dairy industry."

Brewood farmer Andrew Porteous, NFU dairy board vice chairman, said: "We have all become more efficient over the last 15 years or so but despite this many have gone out of production.

"I am not sure how much more we can do to save ourselves unless those we supply improve the price substantially and without delay."

NFU regional director David Collier said the figures revealed the desperate situation on many dairy farms and they would not be a surprise to many dairy farmers.

He said: "The irony is that if dairy farmers had received their fair share of available market returns this year, they wouldn't be faced with such a staggering gap between the price they're paid for their milk and the cost of producing it.

"It is true that prices have started to move up but some milk buyers have told their farmers to expect only a penny increase.

"That's a drop in the ocean given the scale of the price problem we are faced with.

"I'm seriously worried that for many dairy farmers it could be too little, too late."

By Tom Johannsen