Prices have continued to move upwards since the start of the year. The European milk pool is shrinking at an unprecedented rate, with even strong performing countries last year, such as Ireland, starting to feel the pinch. Even though milk prices have risen significantly to reflect the increased costs farmers have been hit with, we are still not seeing much relief from the extreme price hikes.
The European Milk Board (EMB) are reporting that in Portugal prices have increased by 62% for diesel, 77% for maize and 140% for nitrogen fertilisers. In France energy costs have increased by 30% and fertilizer costs have increased by over 80% in the last year. Total milk production costs are calculated at around 53c/kg by the North Rhine-Westphalia Chamber for Agriculture in Germany.
This is a dire situation for many farmers in Europe who are forced to send their cattle for slaughter due to the spiraling costs evaporating their revenues. The situation is summed up by the EMB president Sieta Van Keimpema ‘This incredibly tense situation is currently forcing many farmers out of milk production and is eroding farming structures in the EU down to dangerous levels’. (Dairy Reporter)
The challenges farmers are dealing with is explained in more detail by Paul Tompkins who is the vice chair of the UK’s National Union of Farmers dairy board ‘It takes two and a half years to get a calf from being born on our farm to be actually producing milk and that incurs a lot of costs over those two years’. The rise in costs of both diesel and fertilizer are explained with diesel prices doubling from 63p per litre to £1.29 today. Fertilizer costs have went up from £315/ton to £930/ton which is an extra £60,000 in cost over the year for Oxfordshire farmer David Christensen. David goes on to describe the impact of these price hikes ‘These are big numbers. For many years we have absorbed smaller increases by becoming more efficient. The reality is when you get to these sort of numbers you can’t absorb, something has to give’. The stark difficulties facing farmers is clear to see and the sudden jolt in input costs is severely hampering everyone’s ability to operate. (Speciality Food Magazine)
Catherine’s role is Technical Assistant and she is one of the newer members of the Ingredient Solutions team. Catherine recently graduated in Food Science and Innovation at WIT and is motivated, positive and enjoys working in a team. Catherine says, “I always see the good in every challenge that approaches me as they can lead to opportunities to learn more.” She is looking forward to focusing on the areas that she can control and learning how to perfect them.
Ted is the Factory Manager, he is the man that keeps everything running smoothly, supporting production and technical operations. He ensures that all the machinery within the factory functions at maximum efficiency and is properly maintained.
Suma has worked for Ingredient Solutions for two years as Technical Manager – leading the technical team. Before working for Ingredient Solutions, Suma worked in Asia, the Middle East and Europe and has over twenty years experience in management and leadership in food and other industries.
Pina is our UK Sales Support Administrator and has worked for Ingredient Solutions since 2012. She works alongside Gary Davies and the sales team providing them with sales information and supporting the team especially when they are on the road. Pina works remotely for Ingredient Solutions from her base in Luton in the UK.
Marek is based near Lublin, that’s not a typo we don’t mean Dublin, he’s our man on the ground in Eastern Europe.
