Much of the discussion of the impact of Brexit on agriculture has focused for understandable reasons on the livestock sector, particularly sheep farming. However, the dairy sector also faces challenges.
Rising production and static demand is currently creating an over supply problem in the liquid market. Muller has blamed its recent price cut to farmers on a 37 per cent reduction in the cream price.
Cross-border cream sales have been relieving pressure on the liquid market, but would face a tariff of £972/t in the event of a no deal exit, ruling out export sales.
Kite Consulting, a leading dairy consultancy, are advising farmers to ensure that feed stores are full on October 31st to lock in prices. That should include minerals and fats that come in by EU trades. They should also hold back on investing in new machinery until after Christmas: Kite's advice
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