When it comes to making profits in the dairy industry, farmers are the biggest losers, and retailers are the only winner, the NFU said today.
October 7, 2010

When it comes to making profits in the dairy industry, farmers are the biggest losers and retailers are the only winner, the NFU said today.

DairyCo’s annual dairy supply chain margins report on gross margins for retailers, processors and farmers, published this week, shows supermarkets are making growing profits from milk and dairy products. Sadly, the majority of dairy farmers continue to receive a price for their milk that sits well below the true cost of production.

Over the 2009/10 milk year, the farmgate price dropped by two pence per litre (2ppl) compared to the previous year. Retail gross margins for both increased over the same period.

NFU dairy board chairman Mansel Raymond said: “These latest figures are a complete vindication of the NFU’s Great Milk Robbery report. As ever, dairy farmers are the big losers...