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Dairy farmers struggle to survive as milk prices fall below production costs

Jan 15, 2026, 11:53 PM10
(Update: Jan 15, 2026, 11:53 PM)
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Dairy farmers struggle to survive as milk prices fall below production costs

  • Dairy farmers in Scotland, including Adam and Lucy Johnstone, have experienced a significant 25% decrease in the price they receive for their milk.
  • This decline has rendered their income insufficient to cover the costs associated with sustaining their dairy herd.
  • The ongoing financial challenges and pressure within the dairy industry are forcing many farmers to consider leaving the profession.
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In Scotland, dairy farmers, particularly Adam and Lucy Johnstone, have been facing significant economic challenges over the past few months due to a drop in milk prices. The couple has seen their income from milk decrease by 25%, placing it below the cost of production. This situation has resulted in them receiving approximately £12,495 for their monthly production of 35,000 litres, which does not even meet their essential costs for maintaining their herd. The pressure has become unsustainable as local dairy farmers feel the impacts of diminishing payments from major dairy processors such as Arla, Muller, and First Milk. As demand for milk and related dairy products remain flat, the ripple effect is being felt across the industry. With reduced prices being attributed to increased global milk production, the farmers are caught in a dire situation that has made them contemplate leaving the industry altogether. Lucy voiced the emotional toll these financial stresses have taken, as the couple navigates this crisis in what they describe as survival mode, affecting not only their operations but also their family life. The support from the community is a silver lining that reminds them of their value; however, they express frustration for the lack of financial sustainability that dairy farming currently faces. Furthermore, the National Farmers' Union of Scotland (NFUS) is advocating for greater trust, transparency, and fairness across the supply chain to ensure that farmers' needs and challenges are better addressed. Amidst these struggles, the Johnstones strive to maintain their passion for farming, highlighting that the issues are not merely about finances but also about the importance of feeding the nation.

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