Close Menu
  • Home
  • Aerospace & Defense
    • Automation & Process Control
      • Automotive & Transportation
  • Banking & Finance
    • Chemicals & Materials
    • Consumer Goods & Services
  • Economy
    • Electronics & Semiconductor
  • Energy & Resources
    • Food & Beverage
    • Hospitality & Tourism
    • Information Technology
  • Agriculture
What's Hot

Counter-terrorism chiefs urge farmers to review fertilizer safety

Saks’ acquisition of Neiman Marcus led to bankruptcy

Five US lawmakers investigated for warning troops about illegal orders | Donald Trump News

Facebook X (Twitter) Instagram
USA Business Watch – Insightful News on Economy, Finance, Politics & Industry
  • Home
  • Aerospace & Defense
    • Automation & Process Control
      • Automotive & Transportation
  • Banking & Finance
    • Chemicals & Materials
    • Consumer Goods & Services
  • Economy
    • Electronics & Semiconductor
  • Energy & Resources
    • Food & Beverage
    • Hospitality & Tourism
    • Information Technology
  • Agriculture
  • Home
  • About Us
  • Market Research Reports and Company
  • Contact us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
USA Business Watch – Insightful News on Economy, Finance, Politics & Industry
Home » Milk prices fall below cost, pushing dairy farms to the brink
Agriculture

Milk prices fall below cost, pushing dairy farms to the brink

Bussiness InsightsBy Bussiness InsightsDecember 28, 2025No Comments3 Mins Read
Share Facebook Twitter Pinterest Copy Link Telegram LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email


Dairy farmers are facing severe financial pressure as milk prices fall below production costs within weeks, pushing many companies to the brink and prompting trade unions to demand urgent action from the supply chain.

Most producers are currently paid less for their milk than the cost of producing it, and their position is rapidly deteriorating following the rapid increase in milk production in the UK and overseas.

Feed, energy and labor costs remain historically high, while prices have fallen significantly, leaving farms with little room to absorb further losses.

NFU Scotland vice-chairman Robert Neil said the speed of the economic downturn was increasing pressure across the industry. “There have been highs and lows in the past, but the speed with which prices have fallen this time is unprecedented,” he said. “Farmers are under huge pressure and supply chains must act responsibly.”

This crisis comes at a particularly detrimental time for the industry. Many dairy farms have invested heavily in building, equipment and efficiency improvements over the past two years, driven by strong market conditions and policy signals.

That spending supported processors, contractors, and local jobs, but reduced income now threatens farmers’ ability to service debt, sustain production, and survive.

While some producers who supply supermarkets or operate under organic contracts have limited protection, many conventional dairy farmers are fully exposed to volatile market movements. NFU Scotland has warned that some people are already considering reducing their herd numbers or withdrawing from milk production altogether.

In response, four UK farming unions jointly wrote to milk processors in an unusual show of solidarity calling for fairness, transparency and responsible action as prices continue to fall.

The letter highlights buyers’ obligations under new fair dealing regulations, which have been introduced to rebalance power within dairy supply chains and give farmers greater clarity over how prices are set.

NFU Scottish Milk Committee Chair Bruce McKee said clear communication was essential to maintain trust. “Prices are falling rapidly, but costs remain high,” he said. “Processors must communicate clearly and fairly with their suppliers. Farmers deserve transparency and trust at a time of crisis like this.”

Unions say the economic downturn will be the first big test for the new contracting tribunal, which says farmers have a right to clear explanations about price structures and changes. NFU Scotland is also working directly with banks and retailers, seeking flexibility and support during the depressed price period.

Mr Neil warned that the impact of large-scale farm failures would extend far beyond individual companies. “This is more than milk,” he said. “This is about local jobs, local food security, and the future of our communities. Supply chains must share the risks as well as the rewards.”

Despite the immediate challenges, the sector’s long-term potential remains strong. Major investments such as a £144m upgrade at Arla’s Lockerbie factory and expanded export opportunities demonstrate confidence in the future of the dairy industry.

But without swift and concerted action, the union warns that many farms will not be able to survive the current downturn or benefit from future growth, risking lasting damage to milk supplies, rural economies and food security.

Are you enjoying British farming?

Get the weekly agriculture roundup – the essential UK agriculture newsletter



Source link

Follow on Google News Follow on Flipboard
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Copy Link
Previous ArticleStartup funding in India to reach $11 billion in 2025 as investors become more selective
Next Article McDonald’s, Chili’s, Taco Bell lean into value meals in 2025
Bussiness Insights
  • Website

Related Posts

Counter-terrorism chiefs urge farmers to review fertilizer safety

January 15, 2026

NFU warns that gene editing must not be sacrificed in UK-EU trade talks

January 15, 2026

Government says environmental targets affecting farms are ‘significantly off track’

January 15, 2026
Leave A Reply Cancel Reply

Latest Posts

Counter-terrorism chiefs urge farmers to review fertilizer safety

NFU warns that gene editing must not be sacrificed in UK-EU trade talks

Government says environmental targets affecting farms are ‘significantly off track’

‘Hardest year’ for British arable farming, with Frontier profits more than halved

Latest Posts

Boeing will surpass Airbus’ sales in 2025 for the first time since 2018

January 13, 2026

Delta Air Lines (DAL) 2025 Q4 Earnings

January 13, 2026

Greenland and Venezuela crises accelerate huge spending in Europe’s war economy

January 13, 2026

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Recent Posts

  • Counter-terrorism chiefs urge farmers to review fertilizer safety
  • Saks’ acquisition of Neiman Marcus led to bankruptcy
  • Five US lawmakers investigated for warning troops about illegal orders | Donald Trump News
  • NFU warns that gene editing must not be sacrificed in UK-EU trade talks
  • President Trump suspends immigrant visas for 75 countries: Who will be affected? |Donald Trump News

Recent Comments

  1. one_jdpa on Hundreds gather in Barcelona to protest overtourism in southern Europe
  2. Salvatore Carnevale on Connect category management to the shopper experience
  3. Jerold Lush on Connect category management to the shopper experience
  4. FrankMoone on 100% tariffs on Trump’s drugs: What we know | Donald Trump News
  5. remont_pcka on Hundreds gather in Barcelona to protest overtourism in southern Europe

Welcome to USA Business Watch – your trusted source for real-time insights, in-depth analysis, and industry trends across the American and global business landscape.

At USABusinessWatch.com, we aim to inform decision-makers, professionals, entrepreneurs, and curious minds with credible news and expert commentary across key sectors that shape the economy and society.

Facebook X (Twitter) Instagram Pinterest YouTube

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Archives

  • January 2026
  • December 2025
  • November 2025
  • October 2025
  • September 2025
  • August 2025
  • July 2025
  • June 2025
  • March 2022
  • January 2021

Categories

  • Aerospace & Defense
  • Agriculture
  • Automation & Process Control
  • Automotive & Transportation
  • Banking & Finance
  • Chemicals & Materials
  • Consumer Goods & Services
  • Economy
  • Economy
  • Electronics & Semiconductor
  • Energy & Resources
  • Food & Beverage
  • Hospitality & Tourism
  • Information Technology
  • Political
Facebook X (Twitter) Instagram Pinterest
  • Home
  • About Us
  • Market Research Reports and Company
  • Contact us
  • DMCA
  • Privacy Policy
  • Terms & Conditions
© 2026 usabusinesswatch. Designed by usabusinesswatch.

Type above and press Enter to search. Press Esc to cancel.