Calls for fairness across supply chain as price of milk could surge by 50pc

James Chatham, who sits on the NFU regional dairy board and farms at Brockton, near Shifnal, said farmers are not responsible for setting the price of milk for the public and is asking for fairness across the whole supply chain to help manage current inflationary pressures.

It follows claims the price of milk is to rise by 50 per cent and butter by 30 per cent amid a worsening cost of living crisis.

The cost of four pints of milk will rise from around £1.15 to between £1.60 and £1.70, according to the UK's leading adviser to dairy farmers Kite Consulting.

Meanwhile, a typical pack of butter could increase from £1.55 to more than £2. The war in Ukraine is also said to be impacting prices.

Industry bosses fear that surging costs from feed, fertiliser and fuel will cause an increase in prices not seen in decades.

Mr Chatham said: “Rapid inflation of input costs, with fertiliser prices rising four-fold, animal feed rising by 70 per cent and fuel costs continuing to soar, means that for most dairy farmers the cost of production is much higher than the price they are currently receiving for their milk.

“We know the British public hugely value the high-quality, sustainable dairy products we produce.

“Shropshire farmers are not responsible for setting the price of milk for the public, so we’re asking for fairness across the whole supply chain to manage these inflationary pressures and to ensure that farmers are being supported through these challenging times.

“We will continue to feed the nation, through volatility and adversity.”

Dairy farmers flew into Brussels last week for crisis talks over soaring costs and supply chain disruption.

UK dairy bosses have raised concerns over their costs to the Government but the Department for Environment, Food and Rural Affairs (Defra) is said to be only in "listening mode".

Transport Secretary Grant Shapps said Chancellor Rishi Sunak will always be looking at what else he can do to support people, amid criticism of the Government's handling of the cost-of-living crisis.

Meanwhile, last week dairy giant Müller confirmed that it will increase the milk price it offers to farmers from May.

Farmers who meet the conditions for the Müller Advantage programme will receive a milk price of 40p per litre from May 1 – a 3.5p increase.

Müller has operations in Shropshire at Market Drayton, Minsterley and Telford.

Rob Hutchison, chief operating officer at Müller Milk & Ingredients, said: “As the whole dairy supply chain faces into the challenge of unprecedented increases in costs, we will continue to do everything that we can to support farmers who supply us.

“We will continue, as ever, to closely monitor all of the factors which influence farm gate milk price in the coming months.”