Fears for dairy farmers as processors cut the price of milk

PUBLISHED: 12:32 06 January 2009 | UPDATED: 22:49 15 June 2010

DAIRY farmers are bracing themselves for a tough year after some processors cut the price of milk.

DAIRY farmers are bracing themselves for a tough year after some processors cut the price of milk.The surprise move has upset the National Farmers' Union, which has branded the cut "unjustified".Dairy farmer Philip Bird, of Shute, said: "Eventually trade will just keep going down on the whole and people will have to get their milk from elsewhere."The NFU's dairy board chairman, Gwyn Jones, said: "It is hard to see the justification for any price cuts in liquid milk."Processors, like farmers, are feeling the pinch and are having their margins squeezed, but with oil, fuel and energy prices falling at the factory, processors should have more than enough room to cope with the cuts required without turning to farmers to bale them out."The NFU is concerned that the price cut has come at a time when UK milk production has reached a crucial "tipping point".


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