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South America

UK dairy farmers warn milk prices have fallen below cost

British dairy farmers say milk prices have dropped below the cost of producing it, warning that more family farms could be sold unless prices rise quickly. Producers call the gap between what they are paid and what it costs to keep cows unsustainable.

Dairy cows grazing in a green pasture on a farm
Photo: Christina & Peter / Pexels
BBC Business1 h ago

British dairy farmers are warning that milk prices have fallen below the cost of producing it, squeezing margins and raising fears that more family farms will be forced to sell up. Producers say the gap between what they are paid and what it costs to keep cows has become unsustainable.

Farming groups blame a mix of soft wholesale prices, higher input costs and tough negotiations with processors and supermarkets. They argue that without a quick recovery in prices, smaller operations that lack the scale to absorb losses will be the first to disappear.

The warning adds to wider strain across British agriculture and feeds into a debate about food security and supply-chain fairness. Industry bodies are pressing buyers and policymakers to address how value is shared along the chain before more producers exit. This is not financial advice.

CommoditiesRegulationSouth AmericaBBC Business
This article is an AI-curated summary of the original story published by BBC Business. The illustration is a stock photo by Christina & Peter from Pexels and is not from the original story.

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