Agricultural Expert Warns of Economic Crisis for British Dairy Farmers

Agricultural Expert Bruce Jobson Calls Attention to Rising Costs Affecting British Dairy Farmers

Fortnightly, Bruce Jobson provides insights into the farming industry's future, focusing on difficulties faced by dairy farmers due to increasing costs. Following the Russian invasion of Ukraine, there was a substantial increase in the price of ammonium nitrate fertiliser, rising from £350 per tonne in September 2021 to £1,100 per tonne. This has posed a daily challenge for dairy farmers struggling with low milk prices and rising expenditures.

In response to these challenges, Jobson noted a significant drop in the number of British dairy farmers over two years. As of January 2023, farmgate milk prices peaked at 50ppl but have since dropped, leaving over 1,000 farmers out of the industry, reducing the number of producers to below 8,000.

Jobson's company, Bernicia Media, previously projected that 2023 would be a financially tougher year than 2022 for farmers. Defra figures released in March 2024 confirmed this prediction, showing a 78% decline in average Farm Business Income for dairy farming. Other sectors, including cereals and mixed farming, have also seen substantial income declines.

Bruce Jobson commented on the precarious financial situation, indicating that many farms cannot survive such declines. Presently, farmgate prices do not cover production costs, suggesting that a minimum increase of 5ppl would be required for economic stability. Moreover, Jobson highlighted potential long-term repercussions on investment, pointing to a noticeable decline in UK tractor sales.