Inevitably, the blame game is ping-ponging between those nasty supermarkets, accused of using milk as a loss leader to drive footfall, and the money-grabbing middlemen in processing, seeking to 'cream off' a margin. Of course 'creaming off' is somewhat inappropriate, given that we mostly now consume skimmed and semi-skimmed milk. One of milk processors' main reasons for dropping the price they pay for raw milk is that world cream prices had plummeted.
It's clearly unsustainable for the dairy sector. And, at different times, the same has been true of other agrifood sectors such as cereals and livestock farming. But, surely, it's inextricably linked with being in a commodity sector. And unless we return to the bad old days of protectionism, world prices will dictate what is paid.
So, what's the solution? Is it high- margin, niche production or high- volume low-margin production? Not everyone accepts the stark choice between these two extremes.
The question of sustainable intensification across all sectors of UK farming will need to be tackled. Unless we are prepared to pay a premium perhaps for food security and animal welfare reasons, or because we want to retain our green and pleasant land with animals munching grass on it we must accept the industrialisation of agriculture, with animals kept in large sheds, including mega-dairies.
But is the single mum on a low income with three picky kids to feed prepared or even able to pay that price?
