1. Why are farmers having to dispose of milk?
Dairy farmers supply their fresh milk to processors who process or manufacture the milk into usable consumer products or as an ingredient for other products. The processors then sell their products to various outlets such as supermarkets, cafes and hotels.
It is the closure of restaurants, cafes and other catering outlets, known as the food service sector, as a result of Government measures brought in to control Covid19, that has resulted in a reduction in the demand for milk and dairy products.
It is estimated food service sector orders have dropped by approximately 70-80%. This equates to about 1 million litres of milk being produced every day that has got nowhere to go.
The dairy industry is working really hard to try and redirect this milk to the supermarkets and outlets that are still open, but unfortunately there is too much and it needs to be disposed of.
The is also an additional strain being seen by the processors due to staff members being off sick or self-isolating as a result of the virus. It is estimated that approximately 10% of production operatives are currently absent. There is also the added pressure that the processing capacity at the factories are full.
2. How many farmers are affected?
Many farmers are being affected and it is those farms supplying processors whose market is the food service sector that are being hit. We estimate the milk being disposed of is the equivalent of the production from approximately 300 farms, but a significantly higher number are being affected by a reduced milk price and/or payment terms.
3. Is this affecting farmers all over the country?
Yes, farmers whose milk goes into the food service sector are affected all over the country. This is also happening on a global scale with many farmers in the USA, Canada and elsewhere also affected.
4. If there's too much milk and it is being thrown away why am I struggling to get milk and butter in the supermarkets?
The dairy market has suffered a huge shock due to the instant closure of cafes and restaurants, coupled with customers now purchasing more from the supermarkets. The suppliers understand this and are working hard to redirect lots of fresh milk and fresh dairy products to the shops as quickly as possible. However, this is not a simple process.
It is not simple because the way milk and dairy products are packaged varies depending on whether it is being sold on a supermarket shelf or being used in the food service sector. This means it is not as easy as some processors being able to switch to bottling milk for supermarkets when they don’t have the equipment to do this.
Those processors that have the facilities to bottle milk and dairy products for the supermarkets are currently running at capacity to try and keep up with the extra demand being seen by the supermarkets.
5. Why can't the excess milk be turned into other longer life products?
These factories are also running flat out and are full to capacity. The pandemic has hit at a time when capacity in the UK processing plants is tight because more milk is being produced because the majority of cows are out grazing the fresh spring grass. This means the reduction in sales through the food service sector has had a disproportionately large impact.
6. Isn't pouring milk away going to pollute the environment?
Dairy farmers are extremely conscious about disposing milk in the correct way. There are strict guidelines to follow so they will not be causing any pollution problems.
7. Why can't you just stop milking the cows?
You cannot just stop milking cows. There would be huge welfare and health implications for the animal if they weren’t milked. Removing cows through slaughter would create further issues with the red meat supply industry which is already under a similar pressure to the dairy industry.
8. What is the government doing to support this and prevent farmers from going bankrupt?
The industry is working closely with the Government to try and develop a plan to support farmers through this difficult time. The Royal Association of British Dairy Farmers (RABDF) put forward a plan to Government on Tuesday 7th April asking them to directly reimburse dairy farmers who are receiving a significantly reduced value or are having to dispose of their milk as a result of their processor being heavily reliant on the food service sector. Government are currently looking at the proposals being put forward.
9. Will this mean some farmers will go bankrupt and what impact will that have?
We hope this will not happen, as losing farmers means we will not be able to fully supply the cafes and restaurants when they do eventually reopen.
However, if farmers are unable to continue there are a number of possible consequences, when we come out of the coronavirus crisis.
These include:
· Post-crisis when demand returns to ‘normal’ levels we might not be able to meet that demand from UK farms, which could result in more imports of dairy products.
· There are implications when importing products as there is no guarantee their regulations, particularly relating to the health and welfare of those animals, are at the same high standards UK farmers adhere to.
· The wider rural economy will also be affected. There are many businesses that supply dairy farmers from professional services to farm supply shops that support UK dairy farmers. Without the farmer this whole chain starts to unravel.
· It is also important to remember that the countryside we like to spend our time in often looks the way it does because of our farmers. Farmers are the custodians of the land. They cut the hedges and graze the land. Without our farmers the countryside would look very different.
10. What can we do to support our dairy farmers?
Buy British. We have some of the highest welfare and quality standards in the world on British farms. Speak to your local MP and ask him to support British Farming.
If there is no British produce at your local shop ask to make an official complaint to the supermarket. You could also consider buying British from elsewhere.