April 5, 2010
 

Majority of British dairy farmers earn below average wage

Over three-quarters of British dairy farmers will earn no more than GBP20,000 (US$30,538) for their labour in the 2009/10 milk year, according to the Farmer Intentions Survey report.

The report reveals that almost all dairy farmers would earn less than the national average wage of GBP26,629 (US$40,660) in the 2009/10 milk year.

On an hourly basis, they are left trailing behind the average British worker who can expect to earn GBP14.45 (US$22.06) an hour based on a 33-hour working week.

Most farmers worked almost twice that number of hours, and half worked an 80-hour week. This left two-thirds of farmers earning a maximum of GBP5 (US$7.63) an hour, and fewer than one in five more than GBP7 (US$10.69) an hour.

However, the report shows that working hours have little or no impact on a farmer's decision on their level of future milk production.

The highest earners - GBP20,000 (US$30,538) plus - were more likely to expand and pay more to do so. While most farmers intended to invest more than GBP25,000 (US$38,171), well over half of the bigger producers were aiming for GBP50,000 (US$76,342) or more. According to the report, one in 10 producers said they planned to spend at least GBP250,000 (US$38,171) in the next five years.

Despite the fact that dairy farmers obviously work longer hours than other industries and for lower pay, an increased number of succession plans identified in the report suggests the sector is still attracting new entrants, due to support from supply chains and better milk prices.