Dairy farmers need to be better prepared for market changes

Dairy farmers need to be better prepared for market changes after a new report revealed that their numbers have halved in the last decade.

It comes after the National Farmers Union (NFU) revealed that 60 farmers had given up producing milk in the last month alone – a rate which could see fewer than 5,000 dairy farmers left by 2025 if trends continue.

The main issue faced by dairy farmers is the significant drop in milk prices, with many now facing similar prices to the market low of 27p per litre experienced in 2007.

Meanwhile the cost of running a dairy farm has gone up by nearly 40 per cent in the last eight years according to the NFU and feed for cattle has gone up by 50 per cent during the same period.

Paul Laird, director at The Fish Partnership, said dairy farmers needed to prepared for further drops in milk prices, which could leave their business vulnerable.


“Running a dairy farm has never been easy, but with milk prices continuing to fall drastically those who wish to remain in the sector need to plan ahead,” said Mr Laird.

“Ensuring your farm has a robust but adaptable budget and properly managing your businesses cash-flow can go some way to helping you. Other options could include diversifying your operations to include other more profitable aspects of agriculture or even hospitality."