British Dairy Farmers Hit Hard by Milk Price Cuts
British dairy farmers are reeling after milk prices were slashed by up to 18%, sparking urgent calls from the Liberal Democrats for government action. The party is demanding sweeping reform of the Groceries Code Adjudicator (GCA), insisting the watchdog must be given the powers, funding, and authority to hold major suppliers to account.
Recent announcements underline the depth of the crisis. Parkham Farms has confirmed an 8p per litre cut for November, reducing its price to 35.5ppl – an 18% drop. Freshways is reducing its price by 6ppl, while dairy co-operative Arla Foods is trimming its October rate by 1.7ppl to 45.34ppl.
Figures from the House of Commons library, commissioned by the Liberal Democrats, reveal the steep decline the sector has already suffered. Since 2015, the number of dairy farms has fallen from 12,643 to 8,738 – a drop of more than 30%. In the same period, livestock numbers have shrunk from 1.13 million to just over 1.04 million.
Farmers also face the loss of basic payments and what’s been dubbed the “family farm tax”, with no universal support scheme now in place for the first time since the 1940s. Tim Farron, the Liberal Democrats’ environment spokesperson, said the price reductions could not have come at a worse time.
“At a time when farmers across the UK are already having to deal with the fallout of summer drought – forced to spend more money on feed which further erodes thin profit margins – these cuts will come as yet another kick in the teeth,” he said.
Farron argued that the current system of supply contracts is heavily skewed against farmers. “There can be absolutely no justification for cutting prices for dairy farmers by such a scale. British farmers put food on our tables, and are fundamental to our national security. Enough is enough.”
The party’s demand is for a strengthened regulator able to launch proactive investigations rather than simply respond to complaints. As Farron concluded, only “a regulator with teeth” will be capable of ensuring that farmers finally receive a fair deal.
The coming months will test whether ministers are prepared to intervene — or risk seeing Britain’s dairy industry shrink even further.
