According to DairyCo’s Farmer Intentions Survey, milk producers have lost confidence in the industry over the past year, with 9% planning to quit within the next two years.
This is in Britain, not New Zealand.
Only 32% of 1,230 UK respondents planned to increase production over the next couple of years, compared to 36% at the same time last year. “There was a noticeable increase in the proportion of farmers who were undecided on production levels two years hence, up from 5% in 2012 to 13% this year,” said the report. “This is likely to be a response to the difficulties faced during the 2012-13 milk year and the continued uncertainty on operating conditions for the upcoming year.” . . .
The high level of uncertainty meant 36% of farmers were undecided on investment plans for the next five years, up from 12% in last year’s survey. The number planning to invest nothing over the next five years increased from 12% to 29% over the same period. . . .
The forecast payout for the current season here is uncomfortably close to break-even for most farmers here.
But in spite of that the industry is in a much healthier state than it is in the UK and the medium to long term outlook is good.