Summary
Family dairy farms in Scotland are struggling due to a sharp drop in milk prices, which have fallen below production costs. Oversupply in the global milk market has led to this price slump, leaving farmers like the Johnstones considering alternative ways to sell their milk or even leaving farming altogether. The National Farmers Union for Scotland describes this downturn as unprecedented in its speed and impact.
Key Facts
- The Johnstone family runs a dairy farm in south-west Scotland with 60 cows.
- In recent months, the price they get for milk fell 25% below production costs.
- They make 38.5 pence per litre but sell it for only 35.7 pence.
- The global milk market has an oversupply, causing price drops.
- Large processors like Arla have cut the prices they pay farmers due to excess supply.
- UK milk production might exceed 13 billion litres this year.
- Prices for dairy products like cheddar and butter are nearing their five-year lows.
- The Johnstones are considering direct selling to local customers as an alternative.
