Shoppers warned as price of common weekly food shop set to soar
Dairy farmers have begun to charge more after suffering big losses last year on the back of sky high costs. The average dairy farmer lost more than £240 per cow in the year to March, according to industry accountancy firm Old Mill.
by Graham Hiscott · ChronicleLiveShoppers are being warned to expect a rise in their weekly food shop bill as dairy products could see a price hike. Dairy farmers have started to increase charges after facing significant losses last year due to soaring costs.
According to Old Mill, an industry accountancy firm, the average dairy farmer lost over £240 per cow in the year to March. Andrew Vickery, head of rural services at Old Mill, commented on the situation: "I would expect there to be upward pressure on the price of dairy products and an underlying rise in the milk price."
The Office for National Statistics has reported that the average price for a two-pint carton of milk is currently £1.24, which has remained relatively stable over the year. However, a joint report from Old Mill and the Farm Consultancy Group highlights the difficulties faced by dairy producers.
In the year ending March this year, the average income per cow for farmers dropped by nearly a fifth to £2,910, while costs stayed high at £3,153 per cow, resulting in a loss of £243.
"It was only through selling stock that most businesses managed to remain profitable," Mr Vickery explained, reports the Mirror.
The report also noted a decrease in the average herd size from 303 to 295 and a fall in yields from 7,906 litres to 7,256 litres per cow, attributed to poor silage produced last year. Additionally, many farmers are dealing with substantial tax bills.
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