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Milk, fruit and vegetables will eventually be imported, unless British food producers are fairly paid

milk farmers leaveThough 80% of all milk produced in the UK is consumed domestically, the NFU attributes the fall in price to the sanctions on Russia and weakening demand in Asia.

The FT reports that Asda also justified the low prices paid to farmers saying they were set by global supply and demand.

WHY?

First Milk, the farmer-owned group, one of the UK’s biggest dairy co-operatives, has suspended payments to around 1,200 farmers for two weeks. The company said that returns had fallen 50% in the past year and yet – the FT reports – farm costs are 36% higher than they were in 2007 and the single largest cost component of a dairy farm, animal feed, is more than 50% higher.

milk price fall                      Sources: Defra, DARD & DairyCo

A table from an 2007 overview: Snapshot of farming in the UK, on the BBC website (below), will be of interest to readers news to the subject. Recent price cuts mean that farmers are facing milk prices of just 20p a litre, the lowest since 2007 according to the NFU said, but the following graph indicates an earlier date.

milk prices graphmilk prices graph addendumMilk is now cheaper than bottled water, according to research by The Grocer, which recorded four-pint bottles of milk being sold for 89p by supermarkets Asda, Aldi, Lidl and Iceland.

‘Fiddling while Rome burns’, DEFRA promotes involvement with the volatile global casino: “It is important to remember that the long-term prospects are bright with exports at record levels.”

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Is there any future for those who produce perishable food and are currently held to ransom – unless they join forces and demand prices covering production costs?

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