Dairy confidence knocked short-term but medium-term stays positive

Published 21 December 15

Dairy farmers’ short-term confidence in their business has fallen significantly compared to last year, according to the NFU’s latest confidence survey. Nearly a fifth of respondents from the dairy sector said their business may not survive, up from just 3% in 2014.

This crash in short-term confidence is expected, given the significant drop in farmgate milk prices over 2014/15. Around half of the dairy farmers surveyed said they expected milk prices to have a negative impact on their business over the coming year.

Despite this, medium-term confidence in dairy over the next three years remained positive and was similar to the average across all the sectors.