Since the cost of milk at the store has gone down in most supermarkets, there are many dairy farmers that are wondering if they will go out of business. According to Freshways, it is possible that this unfortunate drop has to do with a drop in trade that directly affected coffee shops, and other businesses that typically use milk are not doing so right now. Staffordshire farmer Peter Pratt says this has to do with a loss in crops and milking equipment UK that were caused by flooding. It is considered as a matter of urgency according to the government.
This will theoretically be deferred until 15 May because of this excessive decline according to the managing director Bali Nijjar. The NFU chairman has stated that for many dairy farmers this is a highly volatile solution. Even beef farmers and others have been hit hard as a result of this tragedy which means, across the board, businesses involved in agriculture, meat production, and many other businesses related to the food market are suffering the most.
About 25% of the dairy farmers in the UK have become affected by this lack of demand for milk and the low prices. Farmers facing this crisis are asking for government support as a result of the coronavirus pen to make that has caused businesses like hotels and restaurants to close which has caused the problem to become exacerbated.
“25% of businesses in the UK are not viable, “said Michael Oakes. “There are many that are standing on the edge of a cliff right now wondering where their support is.”
Even worse, many of the milk processors that provide milk to food services businesses are cutting prices because they are right in the middle of the peak season. 10,000 dairy farms are now currently operating at a loss. Farming representatives, as well as Mr. Oakes, have stated that the coronavirus is the cause and they are holding emergency talks with government officials.
Dairy farmers, like many in the agricultural sector, are struggling: vegetable and fruit farms are suffering with fewer labourers, and the demand for red meat has also dropped herding livestock farmers which means this is not going well for anyone that is reliance upon providing their goods to those that need food products.
George Eustis, who is the environmental secretary said: “Our dairy farmers have been heard regarding their concerns that they have and we are currently suspending rules related to competition and will continue to support them by giving loans that will be made available at their banks.”
Businesses hit by the coronavirus say they are struggling to get access to these loans, or even the forms, which is making this even worse.
Arla Foods UK as stated that there is a major increase for milk right now, specifically to supermarkets that milk right now by simplifying the business. This will hopefully have a positive impact on this situation which seems to have no end in sight.