http://www.guardian.co.uk/business/2012/jul/21/dairy-farmers-supermarkets-milk-prices?INTCMP=SRCH
500 Farmers in Somerset protested
Combination of rising costs and a decrease in the price they are paid for their milk
The cuts come from the milk processors and retailers, who have told farmers that they will impose a 2p-a-litre cut in the amount they pay farmers. This comes only months after the last decrease, a combination that farmers' groups say has left them producing milk at a loss.
Standing in a giant cowshed, home to 750 cows, David Ball does his sums. "If the price reduction comes in on 1 August," he says, "we will see over £300,000 in reduced income for the year."
Competition -
Morrisons supermarket chain, which announced that it will pay an additional 2p premium for each litre of milk it buys from farmers.
Co-op on Friday said it would increase the amount it pays to 29 pence a litre from August
10% of dairy farmers could be forced out of business if the proposed August price cut goes ahead. Since 1996 the number of dairy farmers in the UK has gone down from 34,750 to 14,500. Kite estimates that the next year is likely to be the lowest milk production year on record.
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