The 2ppl increase in retail liquid milk prices, imposed in January, will do little to mitigate pessimism in the industry over declining milk supplies. None is likely to be passed on to farmers and some have even had their milk prices cut.
This news may convince more farmers to quit. In the past 12 months nearly 9% have done so, a higher rate than the average rate of decline over the past decade.
With seemingly no hope, many farmers are in the process of throwing in the towel, particularly now they will receive the Single Farm Payment subsidy whether or not they remain in active production.
Although dairy farmer numbers have been in decline for years, those still in business have tended