Farmgate milk price reduction

That this House expresses concern regarding the significant downturn of the farmgate milk price at a point where the cost of production is increasing; recognises the challenges to farmers unless the cost of production can be reduced; further recognises that the milk price drop follows an unprecedented dry summer causing one of the worst harvests on record forcing farmers to buy in additional winter feed leaving them struggling to cover overheads; understands that despite the introduction of Fair Dealing Obligations (Milk), farmers remain subject to one-sided contracts that allow processors to cut prices unsustainably, threatening the viability of the UK’s dairy industry; notes that these pressures are being compounded by global market volatility and the impact of the proposed changes to Agricultural Property Relief, the no notice closure of SFI with limited clarity on its future iteration and the late announcement of the mid-tier Countryside Stewardship Agreements continuation into next year; expresses alarm that the number of dairy farms has declined by more than 30%, with the national herd having depleted by 90,000 since 2015; and calls on the Government to secure a fair deal for British farmers by bringing both regulators together under the GCA, strengthening its powers and resources, while applying the Principle of Fair Dealings to protect the long-term future of the British dairy industry.