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Excellent News For Dairy Farmers

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According to the BBC the government have announced Dairy farmers and the processing firms they supply have agreed on the broad principles of a deal in their dispute over prices.

This agreement relates to a voluntary code of practice designed to give farmers more bargaining power on the sale of milk

This is only the start of the journey as the finer points of the deal will be negotiated between the two sides over the summer holidays.

The following provides an insight in to the current pricing structure of four pints of semi skimmed-milk…

Retailer’s sale price of a litre of is £1.18 of which 34p is their profit. There is 84p Processors’ price proceeded by 68p Farmer’s production cost. Saleprice from the farmer is 57p which all adds up to 11p loss for the farmer.