Covid-19 crisis cost British dairy farmers £9.4m in April

The coronavirus pandemic cost British dairy farmers £9.4 million last month, according to AHDB.

Analysis from the levy body’s dairy team reveals the loss of food service markets due to Covid-19 resulted in a milk price reduction to more than 5,200 of the estimated 9,200 dairy farmers in Great Britain.

“Those price cuts range from 0.5p to 4p per litre and higher,” said AHDB.

“In addition, nearly 500 had milk collections cancelled, 500 had payments deferred, 2,200 have been asked to reduce milk output and 700 have had the volume they get paid a full price on reduced.

“However, a number of farmers have suffered more than one of these impacts.”

It said the biggest impact of Covid-19 on dairy farmers was a reduction in milk prices – worth an estimated £20m for April and May milk prices – and the overall financial hit to farmers was likely to be more than £9.4m once May price cuts are accounted for.

The report follows interim results from a survey, carried out by the Royal Association of British Dairy Farmers, which reveals more than one million litres of milk was thrown away by dairy farmers from April 6-20.