Ihave been involved in cheese- making and dairy farming for more than 25 years and believe what we are seeing in this industry at the moment is a quite extraordinary set of circumstances.
We have a global financial crisis and the effect on agriculture is palpable. World prices for dairy commodities escalated last year in an unprecedented manner and resulted in UK farmgate milk prices rising from 17/18ppl to 26/27ppl.
My business, the Wensleydale Creamery, produces Real Yorkshire Wensleydale cheese for almost every national retailer. It is facing the twin challenges of supporting family farms and delivering high-quality produce at a price that keeps the business on a sound footing and generates money for investment.
Working with farmers in the Yorkshire Dales National Park, it is fair to say that recent increases in the price paid for milk have helped many farmers. However, with the credit crunch and oil price volatility the reality for dairy farmers is they are again finding the going tough - and it's going to get tougher.
Dairy farmers have to press for higher milk prices and, to an extent, the milk buyers (including ourselves as cheesemakers) have to react, simply to secure supplies. National milk output is lower than last year, despite the EU relaxing quotas by 2% - and last year's output was the lowest for 37 years. Also, exit rates for dairy farmers are high as they see attractive reasons to retire or change direction: cow prices are high and land prices remain strong.
We have been supplied directly for 12 years by the Upper Wensleydale Milk Producer Group - now comprising 41 local milk producers. Over the years we have paid good prices for our milk and are in the top tier of the milk price league table. However, even with our support, in terms of litres produced our average producer size is probably half the national average. Most of them farm in the Yorkshire Dales National Park and farm sheep as well as dairy. The pressure they are under is constant, though we strive together to ensure we each have a viable future.
Farmers, producers and retailers are part of an economic and symbiotic structure and the lead taken by retailers in driving the cost of food down has been beneficial to many parts of this structure, forcing farmers and producers to become more efficient. However, it is critical in these difficult times that this structure is kept in balance.
It is difficult for companies such as ours, mindful of the plight of our suppliers and aware of their options to either exit or to change their market. Yet often finding it difficult to pass on price increases as quickly as we have to absorb increases in cost, we are, to an extent, squeezed against the glass ceiling.
Retailers must understand the pressures on producers and continue playing their part in keeping the structure in balance, supporting us through marketing and by positioning UK farm-originated foods on the shelves. The 'buy British food' message must not suffer at the expense of promoting cheaper goods.
My business is confident about its future, but cannot ignore the factors at play. It is unthinkable that the valley of Wensleydale in North Yorkshire, a unique and beautiful part of England, could be devoid of dairy farmers and a thriving cheese business - the partnership must endure.
David Hartley is managing director of Wensleydale Dairy Products.
We have a global financial crisis and the effect on agriculture is palpable. World prices for dairy commodities escalated last year in an unprecedented manner and resulted in UK farmgate milk prices rising from 17/18ppl to 26/27ppl.
My business, the Wensleydale Creamery, produces Real Yorkshire Wensleydale cheese for almost every national retailer. It is facing the twin challenges of supporting family farms and delivering high-quality produce at a price that keeps the business on a sound footing and generates money for investment.
Working with farmers in the Yorkshire Dales National Park, it is fair to say that recent increases in the price paid for milk have helped many farmers. However, with the credit crunch and oil price volatility the reality for dairy farmers is they are again finding the going tough - and it's going to get tougher.
Dairy farmers have to press for higher milk prices and, to an extent, the milk buyers (including ourselves as cheesemakers) have to react, simply to secure supplies. National milk output is lower than last year, despite the EU relaxing quotas by 2% - and last year's output was the lowest for 37 years. Also, exit rates for dairy farmers are high as they see attractive reasons to retire or change direction: cow prices are high and land prices remain strong.
We have been supplied directly for 12 years by the Upper Wensleydale Milk Producer Group - now comprising 41 local milk producers. Over the years we have paid good prices for our milk and are in the top tier of the milk price league table. However, even with our support, in terms of litres produced our average producer size is probably half the national average. Most of them farm in the Yorkshire Dales National Park and farm sheep as well as dairy. The pressure they are under is constant, though we strive together to ensure we each have a viable future.
Farmers, producers and retailers are part of an economic and symbiotic structure and the lead taken by retailers in driving the cost of food down has been beneficial to many parts of this structure, forcing farmers and producers to become more efficient. However, it is critical in these difficult times that this structure is kept in balance.
It is difficult for companies such as ours, mindful of the plight of our suppliers and aware of their options to either exit or to change their market. Yet often finding it difficult to pass on price increases as quickly as we have to absorb increases in cost, we are, to an extent, squeezed against the glass ceiling.
Retailers must understand the pressures on producers and continue playing their part in keeping the structure in balance, supporting us through marketing and by positioning UK farm-originated foods on the shelves. The 'buy British food' message must not suffer at the expense of promoting cheaper goods.
My business is confident about its future, but cannot ignore the factors at play. It is unthinkable that the valley of Wensleydale in North Yorkshire, a unique and beautiful part of England, could be devoid of dairy farmers and a thriving cheese business - the partnership must endure.
David Hartley is managing director of Wensleydale Dairy Products.
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