Cathedral City Cancels Contracts Amid Dairy Industry Crisis
The renowned Cathedral City cheese brand has disrupted the lives of over a dozen dairy farmers in South West England by terminating their supply contracts, a move that reflects the broader crisis within the UK dairy industry. The producer, Saputo Dairy UK, which is also behind the brands Utterly Butterly and Clover, has canceled agreements with 13 farmers, who previously provided the company with 20 million liters of milk annually.
This significant development has left the impacted farmers struggling to secure alternative buyers to avoid potential financial ruin over the next year. According to the Agriculture and Horticulture Development Board, the UK is currently losing around 440 dairy farmers each year, equating to more than one farmer per day going out of business.
The decision, announced by Saputo, based in Weybridge, Surrey, was described as a necessary measure to maintain the viability of its milk supply chain. Yet, this move has been met with criticism from industry experts, who view it as another setback for dairy farmers already grappling with adverse pricing policies imposed by major food corporations.
The National Farmers' Union (NFU) is actively engaged in discussions with Saputo and the negotiation body Davidstow Creamery Direct to address the issue. This comes at a time when British farmers are actively protesting against new inheritance tax regulations and taking their grievances to the streets, as seen in their recent tractor rally in London's Parliament Square.
Additionally, the crisis highlights the UK's dwindling number of dairy farmers, now estimated at around 7,100. With taxes and unsustainable pricing threatening the livelihoods of these farmers, the NFU continues to provide support and advocacy for those affected.
As the government debates these contentious agricultural policies, Saputo maintains that their decision was essential for future business sustainability while offering impacted farms support during their 12-month notice periods. The company, a significant global dairy player, acquired and rebranded Dairy Crest in 2019 to Saputo Dairy UK.
Despite reassurances from political figures like Sir Keir Starmer, who asserts that farming remains a governmental priority, the current situation underscores a critical period of restructuring and advocacy within the dairy sector.
