'Economically, global milk glut is tougher for us than covid was'

Wholesale prices drop lower than production costs

- BY JON KING

Paul Tompkins warns milk-price crisis is putting family businesses at risk

A GLUT of milk worldwide risks British dairies going bust, a farmer has warned.

Paul Tompkins says his business is losing nearly £2,000 every day and describes the situation as “tougher than Covid”.

Farmers in the UK were told by national dairy supplier Freshways earlier this month the distributor had to throw milk away over Christmas due to excess supplies.

It comes as markets around the world have been flooded with milk in recent months.

Third-generation farmer Mr Tompkins runs South Acre Farm in the Vale of York, North Yorkshire.

He warned: “Most dairy farmers are under severe economic pressure with most seeing prices drop by 25%.

“When you operate on thin margins of 1 or 2%, that's a very significant blow.”

Mr Tompkins said 80% of UK farmers are in a position where the price they get for milk is now less than the cost of production.

He feared that, while some dairy businesses have the financial and emotional resilience to weather the current market storm, others will be looking for a way out.