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Scottish Dairy Farmers Face Unprecedented Price Collapse
16 Jan
Summary
- Dairy farmers in Scotland are experiencing an unprecedented price downturn.
- The price received for milk has fallen by 25% in three months.
- Farmers are considering selling directly to customers or leaving the industry.
Dairy farmers across Scotland are confronting a severe and rapidly worsening economic challenge. In the past three months, the price paid for milk has seen a dramatic 25% decrease, pushing returns below the essential cost of production for many.
For farmers like Adam and Lucy Johnstone, who took over a dairy farm in southwest Scotland two years ago, this situation is forcing difficult decisions. Initially profitable with their herd of 60 cows, they are now contemplating alternative strategies. Options include bypassing traditional buyers like dairy giant Arla and selling their milk directly to local consumers in nearby Moffat, or potentially exiting the farming profession entirely.
The National Farmers Union for Scotland (NFUS) has acknowledged the sector's historical price fluctuations but emphasized that the current downturn's speed and scale are unlike anything seen before. This unprecedented market shift is creating significant uncertainty and financial strain throughout the Scottish dairy industry.
