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British dairy farmers to see profits increase
Date: 09/02/2012
British dairy farmers are set to deliver profit increases of 27% over 2011-12 according to data from Defra – the UK Government’s department for the environment, food and rural affairs – putting the industry on-track to becoming the most profitable sector in UK farming.
British dairy farmers have seen strong milk prices, which have been growing annually at double-digit rates. Prices hit a record 29.3p a litre in November after being boosted by international markets, where dairy products are 22% higher than their average over the past eight years, according to the Commonwealth Bank of Australia.
However, processors have fared less well as high raw milk prices and competitive supermarket pricing has combined to hit margins. Further boosted by an increase in the value of breeding heifers and beef cattle, UK dairy farmers now make an average profit of £84,000 per year, according to Defra.
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