Saturday, January 18, 2014

Milk after quotas

Peter Lauritzen is chief executive of Arla Foods, the UK arm of the Danish-Swedish co-operative dating back to 1880. Arla now has 3,800 UK farmers as members, out of a total 13,500, and their UK business buys more than 25% of the milk produced in the UK. 

An article in the Times (Jan 18, 2014), says that Mr Lauritzen anticipates a torrent of milk being produced after the quota regime ends next year, and a consequent 'price war' driving farm gate prices, and farmers profits lower. Practical Farm Ideas has published similar forecasts for more than two years,