THE PRICE OF MILK 2015

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Stanley
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THE PRICE OF MILK 2015

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THE PRICE OF MILK

It's fifteen years since I wrote an angry article 'The Price of Milk' detailing how badly our local farmers were being treated since the demise of the old Milk Marketing Board in 1994 and it's final dissolution in 2002. Founded in 1933 when farming was in deep depression, its function was to guarantee milk producers a fair price and a market for their product. For sixty years it did exactly that and whilst many farmers disliked its powers all agreed that it had done what it was set up for and ensured an economic price. By 2000 the big dairy companies and the supermarkets were in full control of prices and were acting in concert to drive the farm gate price down under the guise of 'commercial competition'. I warned then that this was going to change the face of farming in our area and it gives me no pleasure to record that this is exactly what happened.
In 2000 there were still many local milk producers and farmer retailers. You didn't have to go far in the district to see fields full of milking herds, we had a local cheese factory at West Marton processing local milk but at Xmas that year it closed. Since then it has been a story of decline as the smaller producers have been driven out of production by lower and lower prices.
In recent months we have seen a further attack on farm gate prices, this time under the guise of competition from global production, the decline in global demand and a consequent fall in prices. I can't for the life of me see how the price of fresh milk in China has anything to do with what it is here! Nevertheless prices have been driven down even further to below the price of production and some of the large processors have been driven out of business reducing the options for selling the milk. The few larger and more efficient local farms who, up to now have managed to survive, are under pressure and it's difficult to see how they can survive in the long run.
Meanwhile we can go into the supermarket and buy milk that is cheaper than bottled water! We are told that this is how the 'market' works and we should be grateful for the lower prices but it would be as well to look at what we have lost under this system. The character of local farming has changed over the last fifteen years and will change even more. We can no longer buy fresh local milk. Price isn't everything but the terrible thing is that there is nothing, apart from a boycott which is impossible, that we can do. We are powerless in this battle of economics and can only watch as a vital part of our local life is destroyed forever. I've spent a lot of my life with cows and working in the dairy industry and I can't tell you how sad I am....

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Ernie Dawson with some of his cattle at Thornton Hall in 1976.
Stanley Challenger Graham
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Stanley
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Re: THE PRICE OF MILK 2015

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News this morning that some farmer's farm gate price has dropped to 15P a litre, far less than the cost of production. They can't survive long at this rate. The essence of market economics is that as supply falls the price will rise but this will be too late for the small farmers driven out of the industry. It is a scandal!
Stanley Challenger Graham
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Re: THE PRICE OF MILK 2015

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Seven years later and the situation is no better. Farm gate prices are driven down by middle men and supermarkets who hold all the power. Dairy cattle in local fields are a curiosity these days. We shall regret neglecting such a basic industry.
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"Beware of certitude" (Jimmy Reid)
The floggings will continue until morale improves!
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Re: THE PRICE OF MILK 2015

Post by Whyperion »

I think it depends which Supermarket you go into. The larger megamarkets (Tesco Skipton I presume and Colne Sainsburys) have an extensive range of milk.
Cow
Goat
Sheep
Homogenised Varieties - Full Fat, Semi, Skimmed, 1percent Fat. In 2 pt, 4 pt 6pt and 8pt sizes
Organic Full and Semi Skimmed , in 1pt and 2pt sizes
Full Cream Jersey in 1ltr Bottles
Assorted milk in named varieties - Bob's Paul's whomevers
Plus the flavoured milks ( that was something started but unigate/dairy crest as a way of getting premium prices on milk) , in 300ml bottles, little cartons and 1ltr cartons (the Alfa-Laval and Tetra Pak stories are great ways of seeing scandinavian business taking on the world !
Plus the Long Life UHT permutations
And non dairy
Pea
Almond
Oat
Soya

In all the isle is far bigger than the days of 1pt bottle in the wire retailer crates with the dairy name on an impressed tag welded to the side of the crate.
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Re: THE PRICE OF MILK 2015

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Bumped again as the industry goes through yet another shock. They were just beginning to get farm gate prices close to the cost of production when Ukraine and input price increases slammed them back into loss making again. If we had any sense and a government food policy we would be subsidising milk. As it is it could become an expensive rarity.
Stanley Challenger Graham
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"Beware of certitude" (Jimmy Reid)
The floggings will continue until morale improves!
Old age isn't for cissies!
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Stanley
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Re: THE PRICE OF MILK 2015

Post by Stanley »

Management of the food market has been left to the supermarkets instead of being seen as a government responsibility. We are paying for this and it will get worse. It's the modern version of food rationing.
Stanley Challenger Graham
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"Beware of certitude" (Jimmy Reid)
The floggings will continue until morale improves!
Old age isn't for cissies!
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Re: THE PRICE OF MILK 2015

Post by PanBiker »

Support your local Milkman. :smile:
Ian
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