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[BBC News] Milk prices rise to help farmers


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The Isle of Man's dairy-farming industry is being jeopardised due to overheads, say agriculture officials.

 

Source : http://news.bbc.co.uk/go/rss/-/1/hi/world/...man/7701594.stm

 

Complete nonsense - hopefully misreporting by BBC and Newsbot rather than 'agriculture officials' not knowing the difference between overheads and variable costs, and thinking fertiliser is an 'overhead'.

 

A four-pence rise in the price of a pint of a milk will be brought into effect in an attempt to balance local farmers' income against overheads.

 

Howard Quayle, president of the Manx National Farmers' Union, said farmers were earning less despite the increase.

 

He added: "This is a modest increase in terms of costs we have to absorb."

 

But Mr Quayle explained that increases in the cost of fertilizer - which has almost doubled in price - and other products could see the dairy-farming industry collapse completely.

 

Worldwide shortage of fertiliser is going to put increasing strain on the industry (China stopped exports, etc.). The 'fertliser famine' could mean not only very high prices, but possibly Manx farmers might not be able to get sufficient supplies. There is a serious danger that the fertiliser crunch could send Manx farming into meltdown.

 

This report from Wales earlier this year indicates the problem that Manx farmers may be facing:

“We can’t get any,” said Graham Hughes, general manager of Carmarthen and Pumsaint Farmers.

 

“In a normal year we would expect to be selling at least 8,000 tonnes by the end of April.

 

“We’ve had nothing for over a week and the last delivery we had was only 300 tonnes, which we sold to six farmers straight away.”

 

Clunderwen and Cardiganshire Farmers arable general manager Richard Carlisle said the company still had some stock, but it was becoming a problem.

 

He said, “We have not yet run out but it’s heading that way and the price will be inhibitive for people to actually use it.”

 

Mr Carlisle said the standard 20/10/10 grade was selling at £160 a tonne at the start of the season last October. Now it is nearly £300.

 

“There is a world shortage and we could potentially run out completely in the UK,” he said.

 

“Those who have not ordered may not get any at all. The people who are really going to suffer are the sheep and beef boys because their prices have been so bad.

 

http://www.walesonline.co.uk/countryside-f...91466-20434884/

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