Fears of milk price cuts amid pandemic for Cumbrian dairy farmers

Although the county seems so far to have escaped having to dump milk or take deferred payments, many producers are worried this could happen as the industry approaches its usual spring flush of milk.

One dairy farmer said they had received a letter from their milk processor, North Lakes Foods, stating that they might have to cut production, while those supplying milk processor Muller have been requested to reduce milk supply by three per cent.

Robert Craig, a director of dairy cooperative First Milk and an Armathwaite dairy farmer, said he had, along with farming colleagues, spent recent weeks trying to persuade the Government to avert a meltdown in the country’s dairy supply chain.

“Since the beginning of the lockdown the dairy industry has lost around 10 per cent of its market into food service – catering, cafés, restaurants etc,” he said.

“As the industry approaches its usual spring flush of milk, we face the huge challenge of processing this surplus milk with little or no surplus processing capacity in which to do so.

“In an attempt to capture some value, those businesses more exposed to food service markets are skimming their milk then trading the fat into a severely-depressed market.

“This current scenario is leading to polarised farmgate prices which will, if there’s no government intervention, very soon affect everyone.”

Earlier this month, the Government announced elements of UK competition law were being ‘temporarily relaxed’ to enable ‘further collaboration’ between dairy farmers and producers to stop surplus milk going to waste.

However, Alistair Mackintosh, National Farmers’ Union Cumbrian council delegate, described the move as a ‘waste of time’ and said: “They are asking dairy companies to work together to find new markets if they are so inclined.

“What is wrong with taking the surplus milk off the market and putting it in storage and then to the supermarkets?”