The new regime

The news so far in January is one of change – people moving at Müller and FrieslandCampina, new products rolled out by Valio, more action planned for African markets by Arla. Closer to home, after rounds of price cuts to farmers by all the big processors, Scotland’s First Milk is delaying payments to farmers for two weeks, due to the downturn in milk prices. While input costs such as fuel have reduced, animal feed remains a higher cost than several years ago. It is not a cheerful picture. Once again, the volatility that is the dairy market is making its footprint felt at the farmgate.

The National Farmers Union is warning that the number of dairy farmers is set to decline to fewer than 5,000 farmers by 2025 in the UK. I doubt the industry would die out completely, but it would be sad to see it reduced to a boutique business. Dairy is an important supporter of the rural economy, and a lot of people depend on farms and farmers for their livelihoods.