Sir, I am a dairy farmer producing milk for Wyke Farms. We have just experienced the first of a number of what I think will be huge increases in our cost of production, currently running at 27p per litre, excluding return on capital.
Due to increases in wheat and soya, our concentrate feed costs have just gone up by 1p per litre.Add to this the relentless rise in the cost of fuel, fertiliser etc and in some cases government legislation, and our input costs will continue to rise.
Having pressed Wyke, we will receive a small rise in milk value in March and April, bringing our standard litre value to 26.38p per litre just about the same as 10 years ago. This is only a start. In order to keep pace with projected cost increases, I think we will need an extra 5p per litre by the autumn to break even.
Become more efficient, I hear you say. We as an industry have been doing so for the past 20 years. I fear there are few if any more efficient ways to go. Large specialist dairy units such as the proposed Nocton megadairy are not looked on favourably by many British consumers, so in order to retain our current system of mostly family farms, our returns must increase.
I am sure Wyke Farms and all the other milk processors will be looking for an increased return on their products to pass back to us, their primary producers. All we need is some of the retail margin created in the last few years. Retailers: look favourably on their requests.
Martyn Brake, chairman of Wyke Farms Producer Group
Due to increases in wheat and soya, our concentrate feed costs have just gone up by 1p per litre.Add to this the relentless rise in the cost of fuel, fertiliser etc and in some cases government legislation, and our input costs will continue to rise.
Having pressed Wyke, we will receive a small rise in milk value in March and April, bringing our standard litre value to 26.38p per litre just about the same as 10 years ago. This is only a start. In order to keep pace with projected cost increases, I think we will need an extra 5p per litre by the autumn to break even.
Become more efficient, I hear you say. We as an industry have been doing so for the past 20 years. I fear there are few if any more efficient ways to go. Large specialist dairy units such as the proposed Nocton megadairy are not looked on favourably by many British consumers, so in order to retain our current system of mostly family farms, our returns must increase.
I am sure Wyke Farms and all the other milk processors will be looking for an increased return on their products to pass back to us, their primary producers. All we need is some of the retail margin created in the last few years. Retailers: look favourably on their requests.
Martyn Brake, chairman of Wyke Farms Producer Group
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