County loses 43 dairy farms in eight years as supermarket 'bullying' cuts profits
ALMOST half of Lincolnshire's dairy farms have closed in the past eight years after failing to battle against supermarket buying power.
In 2002, the county boasted 93 dairy producers, down to just 50 this year.
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Michael Davenport, of Cote Hill Farm in Market Rasen, started producing cheese as well as milk in order to make a profits.
The problem is dairy farmers are only reaping cost price per litre of milk, leaving them with little or no profit.
It is down to the buying power of supermarkets and, despite prices going up, the profit is not being passed on to producers.
Now, the National Farmers' Union (NFU) has launched a campaign to save the livelihoods of dairy farmers and raise awareness of their plight
The Great Milk Debate has been resurrected in a bid to help dairy farmers survive in the face of what has been described by the union as "bully-boy tactics" from supermarkets.
It is supported by the National Federation of the Women's Institute, which has great sway in consumer issues.
And on November 16, policy makers, retailers and milk processors will take part in the debate in London.
Alison Pratt, of the Lincolnshire branch of the NFU, said farmers were drawing the same price for milk as they were 15 years ago.
She said: "We had the debate in 2007 to raise awareness of the difficulties, but I'm afraid things have just not changed.
"Ordinary dairy farmers just can't make ends meet. In 1995, the average milk price was 24.5p and farmers are getting about 25p now.
"We think there has got to be political pressure and this is why we have to come out and say these things.
"We want this debate to bring the issue to the fore."
In England and Wales, 14,968 dairy farms in 2002 have shrunk to just 9,244.
The irony is the world market is pushing prices for milk powder and cheese up. But buyers are not passing on any more profit, despite industry insiders being well aware profit margins for supermarkets are about 16p – the margins were 3p 15 years ago.
One of the only ways for dairy farmers to survive has been to diversify into the production of cheese.
This means producers have total control over milk production and the end product.
Michael Davenport, of Cote Hill Farm in Market Rasen, did just that and has kept his head above water.
He said: "I'm not as worried about the future now that we are making cheese, but it's not easy. I think the economic impact on dairy farmers is simply they can't manage so they are selling up or adding value to their milk by making cheese.
"Whatever people say about the Nocton Dairy plan, it's only farmers reacting to the economy, they are trying to react accordingly."
The November debate will be held at RICS Parliament Square, London.











Comments
by Gnome Chomsky, At the Dairy
Tuesday, August 31 2010, 9:37PM
“Small dairy farms being forced to close by bully-tactic supermarkets, leading to a need to import milk from abroad? Perhaps a couple of local dairies big enough to benefit from economies of scale might keep a few jobs in UK and also tell the supermarkets where to go.
Interesting that another dairy farmer endorses the superdairies.”