In the letter, from NFU chief dairy adviser Sian Davies, various questions are asked of the manufacturers, such as what volume of dairy products they purchase on an annual basis, whether they have a clear sourcing policy for these products and if they’d consider increasing British sourcing levels.
The letter also explains how UK dairy farmers, alongside others in Europe and across the world, have faced seen extreme volatility in farmgate milk prices, mainly caused by global issues linked to reduced demand (closure of Russia market and reduced purchasing of dairy products by China) and increased supply (following good weather and positive market signals).
Over the past 12 months UK farmgate milk prices have plummeted with the average now being around 22ppl, but varying from 14ppl to 32ppl, while the average cost of producing a litre of milk is between 28-30ppl –with UK farmers already the most efficient in Europe.