As far as farming news is concerned the dairy crisis has been hitting the headlines for quite some time now. Most people are well aware of the chronically depressed prices affecting producers in the UK, but how is the dairy industry performing in other countries?
The USA was, according to a study by AHBD in 2015, the world’s largest exporter of cow’s milk. The price of Class 1 milk in the USA in January 2016 was down 13.7% from the previous year.
India, which according to the same study was the world’s second largest producer of cow’s milk, saw farmers receiving 16-17 pence per litre earlier this year, compared with 27-28 pence in mid-2014.
Closer to home, Germany which is the EU’s biggest dairy producer saw average farmgate prices in January 2016 of 22.28 pence per litre, down from 24.32 pence per litre the previous year.
And finally, to the UK’s much maligned dairy industry. January 2016 saw farmers receive an average of 23.13 pence per litre, a decrease on average prices of 26.38 pence per litre in January 2015 and 33.86 pence per litre in January 2014.
Indeed, the picture appears the same across the globe with a whole host of factors, not least a global supply surplus, conspiring to depress prices from Europe to Asia and the Americas.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.