meta Saputo Dairy UK Cuts Ties with 13 South West Producers, Shaking Milk Market | The Bullvine

Saputo Dairy UK Cuts Ties with 13 South West Producers, Shaking Milk Market

Saputo Dairy UK drops 13 South West farms, shaking up the local milk market. With 20 million liters of milk suddenly without a buyer, what’s next for these farmers? Dive into UK dairy’s challenges and discover how this decision could reshape the industry’s future.

Summary:

Saputo Dairy UK has served 12 months’ notice to 13 dairy producers in England’s South West, potentially displacing over 20 million liters of annual milk production. This decision, affecting 3.5% of Saputo’s Davidstow volume, comes amid industry-wide consolidation and market pressures. The UK dairy sector faces challenges, including a shrinking producer base, with only 7,270 dairy producers remaining as of October 2024, and paradoxically increasing milk supplies. Industry experts suggest this move reflects ongoing adjustments as processors streamline operations. The decision’s impact may extend beyond the affected producers, potentially influencing regional milk production and supply chains. As the notice period unfolds, attention will focus on how the displaced milk volume is redistributed and the broader implications for the UK dairy industry’s structure and competitiveness.

Key Takeaways:

  • Saputo Dairy UK serves 12 months’ notice to 13 South West dairy producers, affecting 3.5% of the Davidstow milk pool.
  • This move could displace over 20 million liters of annual milk production, causing a ripple effect in the regional milk supply.
  • The UK dairy industry is grappling with consolidation, milk surplus, and global restructuring pressures.
  • Saputo emphasizes the necessity of their decision to ensure a sustainable milk pool for the future, pledging support for affected farmers.
  • The next 12 months are crucial as farmers seek new buyers. Potential industry consolidation and adaptation are on the horizon.
Saputo Dairy UK, South West farms, milk market disruption, UK dairy industry challenges, dairy farmers adaptation

Saputo Dairy UK has given 13 dairy farmers in England’s South West a year’s notice, potentially leaving 20 million liters of milk without a buyer. This action affects 3.5% of Saputo’s Davidstow milk supply, aligning with the challenges faced by the UK dairy industry amid difficult times and market pressures. 

Milk Supply Shake-up 

The 13 affected farms, all part of Saputo’s Davidstow milk pool, now face an uncertain future. This abrupt change prompts inquiries about milk production in the Southwest. Simply put, the amount of milk affected could fill eight Olympic-sized swimming pools annually. 

Richard Thomas, the leader of DCD, the group that supports Davidstow Creamery suppliers, expressed strong discontent: “We’re deeply saddened by cutting ties with our members. We are dedicated to supporting them during this difficult period.”

Dairy Industry Feeling the Squeeze 

YearNumber of Dairy Farms in Great Britain
201413,000 (approx.)
20247,270

UK dairy farmers are facing three significant challenges in the UK: 

  • Fewer Farms: As of October 2024, only 7,270 dairy farms were left in Great Britain, down from 13,000 ten years earlier. That’s a 44% drop, which shows how the industry is changing.
  • Too Much Milk: Even with fewer farms, milk production was up 3% compared to last year. This extra milk is pushing down farmgate prices – the money farmers get for their milk.
  • Noteworthy global changes are underway: Saputo is making adjustments locally and globally. They’ve closed facilities in Australia and the United States, aiming to optimize their international operations.

Saputo’s decision shows how the UK dairy industry is changing. Big processors are trying to streamline their operations and improve the efficiency of their supply chains.

Saputo’s Side of the Story 

A spokesperson from Saputo Dairy said, “We didn’t make this decision lightly. Ensuring our milk supply is right for the future is necessary.” Saputo Dairy has promised to help the affected farms during the 12-month notice period. Will this assistance allow the farmers to find new buyers and successfully adapt their operations amidst industry changes? 

What’s Next for UK Dairy? 

StatisticValue
Total dairy producers (2024)7,270
Total milk production (2023/24)14.89 billion liters
Liquid milk production (July 2024)494 million liters
Cheese production (July 2024)43.6 thousand tonnes
Butter production (July 2024)14.1 thousand tonnes

The upcoming year will reveal where this surplus milk will find its destination, capturing the attention of all observers. Will smaller dairy companies step in, or will this lead to even more big companies taking over? 

This situation raises some critical questions: 

  • How can smaller dairy farms stay in business when big companies take over?
  • How will advancements in technology impact dairy farming?
  • Will people’s changing tastes affect how much milk we need in the future?

One thing is sure: dairy farmers must be prepared to adapt to remain viable in the industry. The upcoming year will be pivotal in assessing the impact of Saputo’s choice on dairy farming in the Southwest. Stay informed to witness the outcomes firsthand. 

Stay tuned to The Bullvine for updates on this story. To assist the affected farmers, contact your local dairy farming groups or agricultural advisors to explore ways you can help. 

Learn more:

Join the Revolution!

Bullvine Daily is your essential e-zine for staying ahead in the dairy industry. With over 30,000 subscribers, we bring you the week’s top news, helping you manage tasks efficiently. Stay informed about milk production, tech adoption, and more, so you can concentrate on your dairy operations. 

NewsSubscribe
First
Last
Consent
(T1,549, D22)
Send this to a friend