Dairy farmers face steep cost increase to average 31p per litre

Dairy industry analyst Kite Consulting has warned that milk producers will be losing an average 6.5p per litre from next month. A sharp rise in feed and production costs will add to the acute pressure on the dairy sector, which faces a cut of 2p per litre from August 1. The wettest three months for decades have also been costly for many dairy farmers, who have had to house milking herds to avoid damaging pastures. The report calculates that a farmer with about 150 cows, producing 1.4 million litres, will lose about �7,500 each month with higher animal feed costs. The Kite report highlights

In April, an average producer was on a break-even 28.8p litre milk price.

Today dairy farmers are losing �3,600 per month.

Farmgate milk prices will have fallen by 4p since April.

Production costs will rise to 31p per litre.

The report, Difficult times ahead, is based on records of hundreds of dairy farmers across Britain, supplying the liquid milk market. It also said more herds would quit the industry, which in May numbered 10,724 in England and Wales.