This month saw us celebrate the best that dairy farming offers when the 2022 Gold Cup winners, the Logan family from Holehouse Farm, Ayrshire, opened their gates to over 600 visitors.
Over the past decade, the Logan's have taken steps to help safeguard their business by investing in technology, such as renewables, to reduce volatility and make them as sustainable as possible, ensuring they are here well into the future.
Their story is quite fitting, given the UK dairy industry's challenging situation. Whilst much of the current turmoil is out of farmers' control, it's essential to grasp what can be controlled and seek help from within the industry on how best to safeguard your business.
Worryingly, a recent survey estimated that about 10% of producers would stop supplying milk by 2025, with the smaller producers being the most impacted.
Sadly, producers face several challenges that will be here for some time. The difference between the farmgate milk and retail prices is currently a live issue on farms. We know dairy farmers are facing enormous financial pressures and are caught in the crossfire with farm gate milk prices remaining low, while farm input costs are stubbornly high and retail prices remain high too.
We recognise that UK processors also face high energy and labour costs, reflected in high prices. The key difference in the current retail price of cheese is that it is manufactured using higher-cost milk from earlier in the year.
I'd love to be sitting here saying the next six months look positive, but unfortunately, the global markets offer little positivity for dairy farmers here in the UK. The downturn in demand for Whole Milk Powder from China and the forward forecasting from Fonterra suggest this will become an uncomfortable year, which, sadly for many, maybe financially unsustainable.
The UK dairy industry must work together to ensure we have a viable industry now and well into the future. The UK needs a dairy industry from the farmgate to the supermarket shelf to operate efficiently and profitably for all sectors along the supply chain, and we need to ensure this happens and that the value is shared with all parties.
In the meantime, it's essential to understand you are not alone. There are charities out there that offer support and financial help in times of need. We've listed some below to help. Our team is also on the other end of the phone to help where possible.
However, I want to end this month's Milk Digest on a high. Despite the challenges our industry faces, we must still celebrate its successes. As such, entries have now opened for the 2023 Gold Cup. We've streamlined the process to make it easy for you to enter. So, whether you are a farmer member reading this and want to enter, or a consultant or someone working in the dairy industry who knows of someone you'd like to nominate, we'd like to hear from you. Visit https://www.rabdf.co.uk/gold-cup-comp for more information.
Matt Knight
P.s. Next month, I'm taking on the challenge of walking 26.2 miles along the Dorset coastline as part of the Jurassic Coast Mighty Hike, raising funds for Macmillan Cancer Support. Sadly, most of us will be affected by the big' C' at some point in our lifetime. If you'd like to support me while I take on this challenge by donating to this worthy charity, you can do so at https://www.justgiving.com/fundraising/matthew-knight35?newPage=Tru . I will update you on my progress next month.
Farming Community Network
The Farming Community Network (FCN) run a confidential, national helpline and e-helpline which is open every day of the year from 7am to 11pm with volunteers providing free, confidential, pastoral and practical support to anyone within the farming community who seeks help..
https://fcn.org.uk/ , 03000 111 999
The Addington Fund
The Addington Fund is a truly unique, registered agricultural charity that provides housing, feed & forage for those in need.
https://www.farminghelp.co.uk/addington-fund-1 03000 111 999
R.A.B.I
The Royal Agricultural Benevolent Institution (R.A.B.I.) provides financial support to farming people of all ages, particularly those on low incomes and little in the way of savings when they are in financial difficulty.
https://www.farminghelp.co.uk/rabi 03000 111 999