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Dairy farmers forced out of business

Losses narrowed at Arla last year.
Losses narrowed at Arla last year.

Falling milk prices pushed more than 30 Scottish dairy farmers out of business last year.

According to figures released from the Scottish Dairy Cattle Association (SDCA), 34 farmers left the sector in 2015, while seven new dairy units started business.

The net result is a loss of 27 businesses resulting in the total number of Scottish dairy farms, as of January 1, 2016, being the lowest in history at 974.

As of the beginning of this year there were 35 dairy units in Aberdeenshire, one in Banffshire, one in Inverness-shire, five in Moray, 19 in Orkney, one in Ross and Cromarty and four in Shetland.

At the same point last year there were three more in Aberdeenshire and one more in Orkney.

Despite the reduction in dairy enterprises, the number of dairy cows in Scotland continues to rise. As of January 1, the total dairy cow population was up 2,552 to 175,835 and the average herd size hit a record high at 180 milking cows.

SDCA secretary Janette Mathie said: “The impact of the poor milk price has not yet had a full effect as many of the increased cow numbers are the result of long-term planning when prices were at a realistic level.

“Last autumn was good which meant cows were out at grass longer and there is plenty of silage in the pits. Dairy farmers have cut costs where they can but they do face a tough financial future.”