As many as 200 dairy farmers look set to go out of business following the collapse of Dairy Farmers of Britain, according to receiver PricewaterhouseCoopers.
The majority of DFB’s 1,800 farmer members have found new customers for their milk but following government and industry meetings yesterday PwC said around 200 would struggle to continue in dairy farming.
Most of the remaining farmers are small producers in the north east, North Yorkshire, Cumbria, Lancashire and South Wales, producing low volumes in areas of the country that are unappealing to potential customers.
As PwC could currently only offer these farmers a below-production-cost price of 10ppl for their milk, they would have little alternative but to sell up or cull their cows if customers were not found soon, joint receiver Stephen Oldfield admitted.
“Some are young farmers just starting out who have not yet built up their herds to a size that is attractive for milk buyers,” he said. “This is really concerning as the industry is struggling against low economic returns to attract new blood into dairy farming.”