Dairy Crisis Looms: 10% of Dairy Farmers May Cease Milk Production by 2025, Reports NFU

The NFU (National Farmers’ Union) has sounded an alarm, indicating that nearly 10% of dairy farmers might cease milk production by 2025 due to inadequate returns and fluctuating markets. The Dairy Intentions Survey, which garnered responses from nearly 600 dairy farmers, reveals that the number of producers planning to stop milk production has risen to 9%, up from 7% the previous year. Additionally, 23% were uncertain about continuing milk production past 2025.

Major concerns include governmental regulations (87%), high feed prices (84%), soaring energy costs (83%), and issues with cash flow and profitability (80%). Meanwhile, a whopping 91% identified the extensive investment required for compliance measures, such as proper slurry storage, as a significant factor influencing their decision.

In light of these findings, the NFU is urging for an extension of the Defra’s Surry Infrastructure Grant to cover more areas and reduce the minimum spend threshold for funding access. NFU’s dairy board chair, Michael Oakes, emphasized the need for resilient dairy supply chains and more collaborative approaches. Upcoming regulations on contracts seek to promote fairness and transparency in supply chains, allowing farmers to challenge prices and ensuring they can voice concerns more readily. However, the NFU believes that while regulations are essential, it isn’t the sole solution. Oakes stressed the importance of a supportive framework from the government for producing sustainable, high-quality food. The survey was conducted from 5 July to 30 July 2023.