
Freshways will cut the price it pays milk producers by 7p per litre from December 1, to 29.4p per litre, citing weak dairy markets, higher costs and poor returns in liquid milk. Farmers and the National Farmers’ Union said the scale of the reduction was exceptional, while farms are also facing higher fuel and fertiliser costs and drought-related feed pressure.
Lower farmgate prices alongside higher production costs squeeze UK dairy margins and could put pressure on milk supply if producers cut output or leave the sector. The announcement is bearish for milk prices paid to producers.
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