UK dairy farmers face further pressure as milk processor cuts prices

Freshways lowers price paid to producers by 7p a litre, prompting warnings confidence in the sector is ‘at rock bottom’

“Milk is leaving the farm at a loss,” says dairy farmer Ian Harvey, as he warns confidence in the sector is “at rock bottom”.

Most of the UK’s dairy producers were already being paid less for their milk than it costs to produce it after a year of volatile farmgate milk prices, combined with the impact of the summer’s drought and soaring costs of vital fuel and fertiliser triggered by the conflict in Iran.

However, the industry has been shaken further by the decision by two large milk processors in recent days to cut the price they pay farmers for their liquid milk.