British dairy farmers suffer in the milk price war

British farmers are being negatively affected as dairies in Europe are beginning to compete with the market in the UK. The price war that has been occurring at leading supermarkets has meant that the demand for cheap dairy products is stronger than ever.

In fact, this has caused such stress to the dairy industry that some farmers are deciding it is time to cash out. This could have very negative effects on the UK economy as it is one of the largest milk producers in the whole of the EU.

In recent months Robert Wiseman Dairies were taken over by a German rival. As it turned out, this was just the start of a movement in the industry towards European buyouts. Just recently, the Milk Link, a British company has been merged with Arla Foods, a Danish-Swedish owned cooperative.

Many analysts are thinking that this is just the beginning of the changes that are taking place in the industry and that it is likely that in the near future even more change is going to take place as takeovers and mergers increase.

The milk industry was one a strong hold of various cooperatives but the pressure on the market has meant many of them have disappeared – today there are just four key players. The Royal Association of British Dairy Farmers is headed by David Cotton and he has recently commented, “We could well be looking at a great many more changes taking place in the near future. It is possible that we will see Dairy Crest taken over by years end.”

An analyst, Nicola Mallard has stated, “First Milk is looking rather vulnerable right now. Dairy Crest is also unusual as it is not owned as part of a cooperative or privately, which makes it an anomaly in the industry.”