Farm Contractor & Large Scale Farmer
    Twitter LinkedIn
    • FREE Email Newsletters
    • About Us
    • Advertise
    • Subscribe
    • Contact Us
    Twitter LinkedIn
    Podcast
    Farm Contractor & Large Scale Farmer
    • News
      • Arable & Agronomy
      • Dealership News
      • Environmental Land Management Scheme/Policy
      • Event News
      • Health & Safety
      • Machinery
      • People
      • World News
    • Farm Machinery
      • Amenity & Maintenance
      • Cultivations
      • Drilling
      • Grassland Equipment
      • Harvesting
      • Muck & Slurry
      • Sprayers
      • Telehandlers
      • Tractors
      • Tractor of the Year
      • Tyres & Tracks
      • Whatever happened to?
    • Precision Farming
    • Markets & Policy
    • Profiles
      • National Arable and Grassland Awards
      • Company Profiles
      • Reader Profiles
    • Livestock
      • Beef
      • Dairy
      • Sheep
    • Magazines
      1. July 2025 issue
      2. June 2025 issue
      3. Cereals event guide 2025
      4. May 2025 issue
      5. April 2025 issue
      6. March 2025 issue
      7. 2025 Tyre Developments supplement
      8. February 2025 issue
      9. National Arable and Grassland Awards supplement
      10. January 2025 issue
      11. December 2024 issue
      12. November 2024 issue
      13. October 2024 issue
      14. September 2024 issue
      15. August 2024 Issue
      16. 2024 Drills and Seeds supplement
      17. July 2024 Issue
      18. Cereals Supplement
      19. June 2024 Issue
      20. May 2024 Issue
      21. April 2024 Issue
      22. Tyres and Tracks Supplement
      23. March 2024 Issue
      24. National Arable & Grassland Award – Meet the Finalists
      25. February 2024 Issue
      26. January 2024 Issue
      27. December 2023
      28. Agritechnica Preview Supplement
      29. November 2023
      30. October 2023
      Featured

      July 2025 issue available now

      By Matthew TiltJuly 9, 2025
      Recent

      July 2025 issue available now

      July 9, 2025

      Cereals event guide 2025 available now

      June 20, 2025

      June 2025 issue available now

      June 2, 2025
    • Events
    • Podcast
    Farm Contractor & Large Scale Farmer
    Dairy

    Milk prices to remain low in 2016, reveals Old Mill survey

    chrislyddonBy chrislyddonOctober 16, 20153 Mins Read
    Facebook Twitter LinkedIn Email

    Dairy farmers are preparing for an extended depression in the UK market, with an average forecast that milk prices will rise by just 2p/litre over the next year.

    According to a survey by farm accountant Old Mill at the Dairy Show, 24% of its clients expect their average farmgate milk price to increase from its current six-year low of about 24p/litre to 26p/litre this time next year. About 36% expect it to remain between 23p and 25p/litre, with 40% predicting an increase to 27-29p/litre.

    “In a way it is a sign of optimism that only 2% of farmers expected prices to drop further,” said Mike Butler, chairman of the Old Mill board. “There is clearly a feeling that we have reached the bottom, and the mood at the Dairy Show was surprisingly upbeat, with a tremendous attendance despite the current downturn. However, with no sign of an immediate improvement in prices dairy farmers are understandably extremely concerned about their future in the industry,”

    He asked around 100 farmers visiting the stand what their expectation was for milk prices over the coming 12 months, and the results were pretty gloomy. “Without exception, all those surveyed felt the next 12 months at least were going to be very difficult,” said Mr Butler. “Most farmers are now steering away from significant investment in their businesses and a notable proportion were very definitely questioning whether there was a future for them in dairying at all, which is very sad.”

    The survey backed up a report released by Old Mill at the Dairy Show on 7 October, which revealed that dairy farmers were set to lose an average of almost 3p/litre in 2015/16, before accounting for non-dairy income.

    “Worryingly, if the majority of farmers’ milk price predictions come true over the next 12 months, the current position is going to change very little which will undoubtedly put extreme pressure on cash flows,” warned Mr Butler.

    Fortunately, some banks now seemed to appreciate the practical solutions needed in terms of debt refinancing, he added. “Not only are they offering short-term finance to cover late Basic Payments, they are now considering introducing capital repayment holidays for existing debts and restructuring debts over a longer periods.”

    However, processors and retailers had to take heed of the dire straits producers were in. “There is no question that if the current low prices continue it won’t take long to see a significant shift in the industry and ultimately a drop in productive capacity,” said Mr Butler. “Many farmers are looking at their options very carefully now and I would imagine that exit strategies would be speeded up if it weren’t for the widespread existence of TB within many herds.

    “Quite frankly many dairy farmers have simply had enough and processors and retailers should consider how profitable and efficient their own businesses will be when they can only find milk to fulfil 80% of their processing capacity,” he warned. “The industry is on its knees and another 12 months at current levels will simply be too much to bear.”

    Tweet
    Share
    Share
    Pin
    Share. Facebook Twitter LinkedIn Email
    Previous ArticleBosch agricultural robot to make farming cleaner and more efficient
    Next Article Rehydration supplement boosts calcium status
    chrislyddon

    Read Similar Stories

    Hi-Spec to introduce new diet feeder at Royal Highland

    June 16, 2025

    Lely introduces the Vector MFR Next

    April 3, 2025

    Palm-free fat supplement helps dairy farms to cut CO2

    March 31, 2025
    Most Read Stories

    Polish manufacturer looks to UK for growth

    July 14, 2025

    Latest updates to applicators

    July 14, 2025

    High-quality bales and reliability key to baler

    July 13, 2025
    Farm Contractor & Large Scale Farmer

    The UK's leading agricultural machinery journal

    Twitter LinkedIn
    © 2024 MA Agriculture Ltd, a Mark Allen Group company

    Privacy Policy | Cookies Policy | Terms & Conditions

    • Farmers Weekly
    • AA Farmer
    • Poultry News
    • Pig World

    Type above and press Enter to search. Press Esc to cancel.