UK dairy farmers’ losses set to rise in 2016/17

UK dairy farmers lost 2.71p/litre in 2015/16 and are set to lose a worrying 2.81p/litre in 2016/17, according to analysis by farm accountant Old Mill. Based on analysis of clients’ accounts with a March 2016 year-end, and working with the Farm Consultancy Group to predict future trends, Old Mill calculated that milk prices averaged 26.34p/litre in 2015/16 and will only rise to 26.50p/litre in 2016/17. That compares to a cost of production of 29.05p/litre and 29.31p/litre, respectively. Howeve