Farmers are to ‘furlough’ their cows in a desperate bid to cut milk production

Farmers are to ‘furlough’ their cows in a desperate bid to cut milk production amid falling demand within the dairy industry.   

Unions including the Royal Association Of British Dairy Farmers, Dairy UK and the National Farmers Union have united behind a rescue plan for the dairy industry which could include the setting up of a government-run milk reduction scheme.

With restaurants and coffee shops closed the demand from the food service industry for milk has plummeted by as much as 50 per cent. 

Dairy farmers across the UK are having to dump tens of thousands of gallons of milk due to the massive slump in demand amid reports dairy distributors have failed to turn up to collect supplies as their processing plants are full.

Now farmers could change the diet of their cows and adopt different feed regimes to cut production – effectively furloughing their livestock so as to prevent any further waste. 

Among those to have been hit by a fall in demand for milk is Josette Feddes who runs a farm in Wanborough near Swindon, Wiltshire. 

She was forced to pour away 12,000 litres when processors failed to turn up to collect her milk. Her 250-strong herd produce 6,000 litres a day and she fears further waste if something isn’t done soon. 

She is calling for processors and the Government to work together to find a solution.

Her dairy sends the bulk of its daily yield to Freshways, a processing plant in London which sells to Costa Coffee, Starbucks and airlines, but which no longer requires as much due to the lockdown. 

Mrs Feddes, who has been farming at JoJo’s Dairy for 12 years, said: ‘It is utterly desperate. There is a need for milk – homeless people, hospitals. There are starving people in the world and this is just so frustrating. 

‘Milk is needed left, right and centre, there has to be a way for us to supply it. We need to find a way to use it. There are so many people without milk at the moment, it is really silly.’ 

In a bid not to waste any more, she and husband Jonathan have started pasteurizing as much as they can themselves and selling it in bottles at half price to the local community. 

Mrs Feddes said: ‘I need to look after the farm and the animals, and just do not have the time to bottle up and deliver to local businesses. We are desperate for local help to solve this supply chain issue. Cows will keep producing milk, so we can’t just not milk them.’   

Katherine Hamilton and her family had to pour away 10,000 litres of wasted milk. 

They have 300 cows at their farm in High Halden, Kent, but were forced to pour away milk when their processor didn’t turn up to collect it, blaming problems with finding enough staff. 

They have since resumed pickups but are only taking around 1,500 litres, compared to the 6,000 to 8,000 a day they usually collect. 

It comes just weeks after the family had a letter to say the price of milk was going to be cut by 2 pence a litre. 

Then, they were told payment would be delayed until May. 

Mrs Hamilton said: ‘All of the cheques we had issued to pay our suppliers, cattle feed, to the vet, diesel for the tractors – all just bounced. 

‘They are phoning us saying why haven’t we paid? We had to get in touch with the bank and extend the overdraft until May. 

‘The tricky thing for us is that you can’t furlough the staff. We have still got to carry on, you can’t just stop looking after the cows. When they said they weren’t going to collect the milk, it was heartbreaking. 

‘You think what is the world coming to? There are people who need this.’ 

Her processors usually supply coffee shops and airlines. Mrs Hamilton has called for a relaxation on rules so that they can now sell their milk to supermarkets instead. 

Elsewhere, Clive Stickland, 62, who runs a farm near Billingshurst, West Sussex, filmed himself opening up the tap on a storage tank at his farm earlier this month as he had been forced to throw away gallons of milk.

He said: ”It is literally pouring money down the drain. I had to get rid of 4,200 gallons (16,000 litres) when I received an email saying there would be no collection. I did not have the storage capacity to keep the milk so it had to go.

‘We all understand why the demand has dropped but it is still heart-breaking just to throw away our product.’

His 300 cows produce up to 1,800 gallons (8,000 litres) of milk each day and he has a scheduled collection by tanker every other day. 

UK dairies produce just over 220million gallons (one billion litres) of milk each year. Like many dairy farmers Mr Stickland sells his milk to Freshways, the UK’s largest independent dairy distributor.

They supply hundreds of companies in the food service sector, including McDonalds, British Airways and P&0 cruises.

With those businesses closed or furloughing staff due to Covid-19 crisis they have a surplus of milk and have also faced problems with drivers and other staff having to self isolate and so reducing their capacity to work as normal.

The supply of milk to the retail sector for shops and supermarkets has been unaffected.

Fourth generation dairy farmer llyr Griffiths had to dispose of 2,500 gallons (11,500 litres) of milk when his collection from Freshways failed to arrive.

The 28-year-old, who runs a farm with 500 cows in Llangoedmor, near Cardigan, North Wales, was sent an email the day before his scheduled collection telling him it had been cancelled.

Disposing of the milk as cost him £3,000 and he fears this is just the start that could see his livelihood collapse.

He said: ‘What is so worrying is that there is no guarantee on when the collections will take place.

‘The cows have to be milked and if it is not collected, I’ve no choice but to throw it all away.

‘Until the lockdown is lifted we are not going to see any change.’

Abi Reader, who runs a farm in the Vale of Glamorgan, added: ‘Roughly 50 per cent of milk goes into retail & 50 per cent into food service.

‘The food service sector has more or less gone. The food service sector had more value. And any dairy going into exports has become incredibly difficult to shift.

‘Retail has picked up 20-25 per cent uplift from loss of the food sector but there is a heck of a lot of excess milk floating around. With the loss of coffee shops, bakeries, vending machines, pubs and restaurants people aren’t consuming dairy in the same way.’

The National Farmers’ Union has written to Environment Secretary George Eustice urging immediate action.

Among its proposals are a government run voluntary national production reduction scheme – which effectively furloughs dairy cows – and engagement with the EU Commission to introduce market support measures, such as Private Storage Aid.

A letter sent by members of the dairy industry to Mr Eustice reads: ‘The situation is continuing to escalate rapidly with serious financial consequences for many individual businesses. There are farmers unable to pay their feed companies and having to sell cows.

‘There are dairy companies that, having lost all of their key markets, still have to deal with the milk and find a home for it in an oversupplied marketplace.

‘These may have been isolated impacts to start with, but we know that already around a quarter of the dairy industry has been affected within just a matter of weeks.’

It adds: ‘It is important to reiterate that only a matter of weeks ago, all of this milk had a good home, and hopefully in a few months’ time, those markets will return. 

‘The British dairy sector wants to be there to meet that demand, so it is crucial that the industry is not irreversibly damaged by this crisis.

‘We need action now, as well as a more considered response for the medium and longer-term measures. We cannot over-emphasise the urgency of the current situation. 

‘Unprecedented times call for unprecedented measures, as government is already demonstrating elsewhere. We believe now is the time to do all we can to ensure the long-term sustainability of the UK dairy sector.’

NFU Chairman Michael Oakes said earlier this month: ‘We have seen the almost complete loss of the foodservice market and closure of restaurants and cafes during the lockdown which has left some processors with little or no business. 

‘This has led to some farmers feeling like they have no option but to dispose of milk on farm.

‘We are working as a matter of urgency with government and the supply chain to find solutions to the problem, including measures that will divert milk into retail and developing measures that will support affected farmers through this crisis.’

A spokesman for the Royal Association of British Dairy Farmers said they had asked the Government to reimburse dairy farmers who are receiving a significantly reduced value or are having to dispose of their milk.

Peter Alvis, Chairman of RABD, added: ‘Removing the excess distressed milk from the market place will help to stabilise the current spot price without causing long-term market distortion.’   

A spokesperson for the Department for Environment, Food and Rural Affairs earlier this month said on the impact of coronavirus on the dairy industry: ‘We have taken a number of measures to support our food and farming sectors to manage the impact of coronavirus on the dairy supply chain. 

‘We are also working very closely with farmer and processor representatives to understand the specific challenges that the dairy sector is facing.’  

Last week the government announced it would temporarily relax elements of UK competition law to support the dairy industry through the coronavirus outbreak. 

With the UK’s dairy farmers producing over 40 million litres of milk every day, the legislation, which will be laid shortly, will allow the industry to adapt to changes in the supply chain including decreased demand from the hospitality sector and reduced collection by retailers who have had to close.

It follows action already taken by the government to temporarily relax competition rules to allow retailers, suppliers and logistic services to work together during the coronavirus outbreak. 

A spokesman for Defra said: ‘While this has already allowed the dairy industry to redirect some of their supplies to retailers, this latest move will enable further collaboration between dairy farmers and producers so they can avoid their surplus milk going to waste and harming the environment.’

Environment Secretary George Eustice added: ‘Our dairy industry plays a crucial role in feeding the nation and it is essential that they are able to work together at this time. 

‘We’ve heard loud and clear our dairy farmers’ concerns which is why we are further suspending competition rules law to allow dairy farmers to work together on some of the most pressing challenges they are facing. 

‘I am also urging farm businesses to access the loans that are available from their bank to support them in this period. We welcome our farmers’ heroic efforts in ensuring food supplies remain resilient and will continue to support them through this difficult time.’