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14/09/2006
Dairy farmers urged to share facts on increasing production costs
The NFU has joined forces with the RABDF to call on dairy farmers to share facts on how this year's drought and rising energy prices are set to affect farming business.
The two organisations have produced a questionnaire after many dairy farmers were forced to use valuable forage stocks and purchase concentrates to supplement poor grazing as a result of this summer's heat wave.
The NFU and RABDF fear this, coupled with rocketing utility bills, is storing up major problems for the autumn and winter for dairy farmers and the wider industry.
The questionnaire is aimed at finding out how these exceptional factors have impacted on their production costs and challenge the rest of the supply chain to ease pressure with an up-turn in milk prices for farmers.
NFU dairy board chairman Gwyn Jones said: "I know from my own experience the hot weather in July especially has obliged many farmers to supplement grazing. They now face a stark choice of cutting back on milk output or buying additional forage.
"In a normal year most farmers would cope with this but not after swingeing price cuts and coupled with high energy prices.
"With this questionnaire we want to get credible, accurate information from dairy farmers, that allows us to show clearly to the rest of the supply chain the impact they are having.
"There is already a strong market case for a milk price increase for some producers, but this will only go some way to dealing with these issues. August's milk production figures - the lowest since deregulation - show quite evidently that many efficient dairy farmers are facing the wall and unless there is some redress the current pricing situation is unsustainable. I have grave fears for the future of the industry."
The two organisations have produced a questionnaire after many dairy farmers were forced to use valuable forage stocks and purchase concentrates to supplement poor grazing as a result of this summer's heat wave.
The NFU and RABDF fear this, coupled with rocketing utility bills, is storing up major problems for the autumn and winter for dairy farmers and the wider industry.
The questionnaire is aimed at finding out how these exceptional factors have impacted on their production costs and challenge the rest of the supply chain to ease pressure with an up-turn in milk prices for farmers.
NFU dairy board chairman Gwyn Jones said: "I know from my own experience the hot weather in July especially has obliged many farmers to supplement grazing. They now face a stark choice of cutting back on milk output or buying additional forage.
"In a normal year most farmers would cope with this but not after swingeing price cuts and coupled with high energy prices.
"With this questionnaire we want to get credible, accurate information from dairy farmers, that allows us to show clearly to the rest of the supply chain the impact they are having.
"There is already a strong market case for a milk price increase for some producers, but this will only go some way to dealing with these issues. August's milk production figures - the lowest since deregulation - show quite evidently that many efficient dairy farmers are facing the wall and unless there is some redress the current pricing situation is unsustainable. I have grave fears for the future of the industry."
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