Milk processors creaming off dairy profits

Wholesale cream prices are on the increase thanks to good demand and low supplies.

But the news has left dairy farmers scratching their heads wondering why their milk price is not enjoying the same up turn in fortune.

Milk processors have been quick to blame recent price cuts on low cream prices but as the tide is turning extra profits are not being passed back to farmers.

NFU dairy board vice chairman Mansel Raymond said: "With confidence in the dairy industry at an all time low farmers could do with a welcome boost in the market place.

"However while this price rise is good news, most of the extra profit afforded from cream will line processors' pockets – they are literally creaming off the extra cash.

"The NFU remains committed to calling for supermarkets and processors to share some of their profits back down the supply chain, so farmers can benefit from this price uplift and go some way to avoiding a meltdown in the dairy industry."