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Milk prices seem to be low everywhere. Is it really just over-production ? #

I know that in the UK milk prices are hammered flat by the purchasing power of the supermarkets, dairy farmers are leaving the industry of going into value-added products like cheese and yoghurt. Basically their view is that if they can't get the milk from the UK, they buy it from europe, which is madness.

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Thu Jun 18th, 2009 at 05:16:21 PM EST
[ Parent ]
A farmer I spoke to two weeks ago put the blame for dropping milk prices squarely on lack of demand, coupled to increased production. Last year, EU ministers decided to boost the milk quotum with 2% - which is now looking a silly thing.

Currently his business (with 85 cows) is losing money - however 2007/2008 were very good years for him, so he's not complaining too much.

An analysis by the Wagening University last month says that about 15 percent of the Dutch farmers, generally the bigger farms (80 cows or more), don't suffer. For farmers who just started, milk prices are starting to make life difficult.

by Nomad on Fri Jun 19th, 2009 at 02:31:09 AM EST
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