Posted: 20/01/2015 at 18:18
I think farmers get around 25p per litre from firms like Muller Wiseman etc. but it costs farmers around 1p more to produce it. MW probably collect/use/sell on in various ways & to various outlets and their business probably accounts for about 30% of all the milk produced in the UK.
As far as I know, most dairy farmers only manage to survive at present because of the payments they receive from the Rural Payments Agency - these relate to the acreage they hold.
The whole thing is unbelieveably complicated, and if you check out MW's website you'll see what I mean............. ! They seem to be the people who collect from most of the dairy farms round here - my neighbour gave up milk production two years ago as he was losing too much money.
Despite the efforts of some farmers to increase the size of their herd, there are many others who can't compete at that level as their acreage and buildings/equipment simply aren't adequate and the costs they'd incur ref enlarging/updating just don't add up.
My own Pa was a successful dairy farmer in the days of the Milk Marketing Board (and even before that!) but I must confess I'm a bit out of touch with the current scene despite having some (slight) connection with the farming industry still.