August 16, 2005

UK may face milk shortages in two years

Low milk prices have resulted in more and more dairy farmers quitting their businesses in the past two years. If unresolved, Britain could face a big domestic dairy shortfall in two years, according to a UK government-funded report.

One in eight dairy farmers surveyed had quit their businesses in the past two years, while another one in six of those remaining may leave the dairy industry within the next five years.

The shortages could hit British manufacturers of butter, cheese and powdered milk hardest though liquid milk supply is unlikely to be affected.

Milk production could fall by one billion litres annually by 2008, thus resulting in a shortfall that imports would meet, according to Manchester University's Professor David Colman, who wrote the report.

UK dairy farmers have been saying that they are barely able to survive on prices they get on local markets at 18 pence a litre. Milk production costs range from 17 pence to 23 pence a litre.