Last Chance for Welsh Dairy Farmers

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Dairy farmers in Wales have until this Friday to apply for an aid scheme worth £1,800.

The EU Conditional Aid Scheme is only open to dairy farmers in Wales and, specifically, those that were in milk production with a supply contract on 1 January 2016.

To qualify before the deadline at midnight on Friday 30 June, producers need to complete an online questionnaire with information about their farm business. In return, farmers will receive the payment by the end of September as well as a report, prepared by the Agriculture and Horticulture Development Board (AHDB), identifying business strengths and weaknesses and a comparison against industry performance indicators.

The link for the questionnaire as well as more information can be found on the AHDB website.

Farms with land falling outside of Wales can still participate in the scheme if the majority of the land is in Wales.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Better times ahead for Dairy Farmers?

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More good news for dairy farmers, as both First Milk and Arla have raised the milk price for their farmers.

Arla have raised their milk price for its 2,700 British farmers by 1.6p per litre, while First Milk have raised theirs by 2p per litre – the largest increase for nine years.

However, the NFU has warned dairy farmers to look past the headlines and ensure they read the small print in their contracts, as many  will be offered new contracts as the value of milk continues to rise.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

2016 Set To Continue Dairy Farmers Slump

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Milk prices look set to continue to slump throughout 2016 and are predicted to trend upwards in early 2017.

The EU Commissions recent analysis is warning dairy farmers of further price reductions. However, it is not clear what, if any support will be put in place for those suffering as a result.

Analysis of the global market indicates growth in dairy consumption across Asia, America and the EU which is positive for those farmers selling onto exporters. Unfortunately, world supply is still increasing at a faster rate than world demand.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Britains Dairy Farmers Continue To Be Squeezed

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Britain’s dairy farmers are facing another troubled year based on projected figures. The average takings of UK dairy farms are expected to be down by as much as 45%, as the plummeting price of wholesale milk continues to fall.

Official statistics have projected the income will have almost halved to an average of £46,500 this past tax year. The drop in revenue has forced many dairy farmers to either cull their herd for selling as beef, close business, or switch to other types of farming.

However it has been a better year for poultry farmers who are forecasted to report a 14% rise for the same period.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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Pressure On Dairy Farmers Continues To Grow

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In the wake of the recent flooding, farmers in Britain have been dealt yet another blow.

2016 hasn’t started well for farmers as First Milk announce further cuts for a number of balancing and creamery pools, just a month after its previous change. Interim chairman Nigel Evans confirmed that “2015 was a hugely challenging year for First Milk and its members” leaving most farmers’ A milk prices further below the 20p/litre mark.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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Poor Outlook Looks Set To Thin The Herd

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According to a recent survey carried out by Royal Association of British Dairy Farmers (RABDF), almost half of Britain’s dairy farmers are looking to leave the sector. Of the remaining farmers, 45% have had to put on hold their expansion plans.

49% of dairy farmers see no future for themselves in the sector, with the milk prices continually low for the past 12 months, and no visible rise on the horizon. It would leave approximately 5,000 dairy farms, of which half do not have the confidence to invest moving forward. It could soon see the end of the industry.

The main reasons for looking to quit ranged from long hours for very little return and banks  unwillingness to give further assistance, to not having a successor to carry on the family business. For those who have shelved their plans for expansion, the simple reason was lack of surplus cash.

RABDF vice chairman Mike King says that “supermarket discounting has been among the key influences”, but added that they “continue to urge all retailers to pay all farmers a fair price for milk for processing – one which covers cost of production and leaves sufficient for investment purposes.”

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Morrisons Got Milk

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A recent meeting held between supermarket giant Morrisons and the NFU to discuss the milk crisis has been described as “constructive” by Farmers For Action.

The meeting follows Morrisons’ recent announcement that a new milk brand will be hitting their shelves in the autumn and the milk sold by this brand will result in an extra 10p per litre paid to the farmer.

Currently four pints (2.27 litres) of milk sells for 89p; the equivalent carton sold under Morrisons “Milk for Farmers” brand will cost customers an extra 23p, with the increase resulting in a fairer price for farmers.

Although Morrisons aren’t the first to introduce an initiative such as this, dairy organisation AHDB feels that 10p will make a “considerable difference” and the NFU plan to approach other retailers in the hope of inspiring similar actions.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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Further Milk Pricing Cuts Expected From September

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Processor Muller Wiseman is due to follow the lead of its competition and announce a 0.8p per litre price cut from September.

From 7th September, Muller’s 1,200 suppliers will be paid 22.35p per litre, with a spokesperson admitting that while the long term forecasts remain positive, the short term value has sharply declined.

Many dairy farmers are already struggling with the current volatility of the market and will find their cash flow problems exacerbated by the price cut.

If you are a dairy farmer concerned about your financial future in the light of the milk price cuts, please contact us for help and advice.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Price Cut For First Milk Suppliers

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Dairy farmers have received yet another blow this month as First Milk have announced a further price cut to its supplier members.

As from 1 July 2015, the standard price paid per litre has been reduced by 1p and means that many farmers will now be receiving less for their milk than it actually costs them to produce it.  The move comes following First Milk’s announcement that they made losses of £22million in 2014/2015 which also resulted in a delay in suppliers receiving their money earlier in the year.

Although a spokesperson for First Milk has stated that the company has a turnaround plan in progress with several executive changes having already been implemented, there is unlikely to be a quick fix and many dairy farmers (already struggling with the current volatility of the market) will find their cash flow problems exacerbated by the price cut.

If you are a dairy farmer concerned about your financial future in the light of this announcement,  please contact us for help and advice.

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Dairy Farmers – DEFRA Appeal to HMRC for Tax

www.greenandco.comAccording to farming minister George Eustice DEFRA have requested that HMRC take a “sympathetic stance” with dairy farmers and consider the individual circumstances of each business in the wake of the dairy crisis. It has been requested that tax payments be deferred for the hardest hit or payment plans be considered so that liabilities can be paid in instalments.

This and other action points were outlined at a recent meeting of dairy industry representatives hosted by DEFRA, where it was also decided that a new industry-led group would be set up to investigate the dairy supply chain and the development potential of a futures market.

DEFRA has asked the Rural Payments Agency to prioritise dairy farmers when administering farm payments and UK banks were also in attendance at the meeting, outlining the ways they can offer support to dairy farmers.

Hopefully we will see these plans executed in the near future.

For further information please contact Green & Co.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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