Milk producers take a hit as protesters target Müller

Dairy farmers' net profits fell by around 25 per cent in the year to March 2016, and could fall further this year, according to a report from a firm of farm accountants published on a day when producers once more took direct action outside a milk processing plant.

Profits for dairy farmers could fall further this year. Picture: Ian Rutherford

Non-aligned milk prices dropped by around 4-6p/litre over the year, compared with 2014-15, meaning profits typically fell by more than 25 per cent, said Andrew Vickery of Old Mill accountants.

“However, profits have been extremely volatile and some producers will have suffered far greater losses,” he added.

Vickery said that while supermarket-aligned suppliers had fared “better”, with price cuts of between 1p and 4p/litre, the average price on some supermarket-aligned contracts had still fallen by more than any reduction in the costs of production.

“As a result, almost all producers – whoever they supply – have endured a large hole in profits and a steep drop in turnover, which in many cases has translated into serious cash flow problems.”

But despite some signs of an uplift in milk price in recent months, protesting dairy farmers were once more making their dissatisfaction at the small amount of this improvement actually filtering its way back to the farmgate by holding a demonstration outside the Müller plant at Market Drayton.

The company, which was criticised by farming unions and others for failing to lift the prices it paid to non-aligned producers from September, said that the Sunday night protest – which could be followed by others later in the week – was “misguided”.

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