Tesco, Sainsbury's, Morrisons, Asda shoppers who buy milk 'warned'

Aldi, Lidl, Tesco, Asda, Morrisons and Sainsbury's customers could be hit hard in the pocket by the spike.

A warning has been issued to Tesco, Asda, Morrisons and Sainsbury's shoppers over buying milk - amid fears the cost could SKYROCKET. Aldi, Lidl, Tesco, Asda, Morrisons and Sainsbury's customers could be hit hard in the pocket by the spike.

Dairy farmers have suffered losses as a result of lower wholesale milk prices but that is beginning to change, says an industry expert, which could see prices rising for shoppers. The price of a household staple in the weekly food shop could be set to soar as a result.

The average dairy farmer lost more than £240 per cow in the year to March, according to industry accountancy firm Old Mill. Andrew Vickery, its head of rural services, said farmers are beginning to recover more of those costs from retailers.

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He said: “I would expect there to be upward pressure on the price of dairy products and an underlying rise in the milk price.” Figures from the Office for National Statistics show the average price of a two pint carton of milk is £1.24, broadly flat year-on-year.

A report from Old Mill and the Farm Consultancy Group reveals how tough it has been for dairy producers. According to Old Mill, the 2024/25 milk year is expected to return a milk income of £3,308/cow against a cost of production of £3,122/cow. On average, profits are predicted to rise to £590/cow.

The report also said the cost of production remained high at £3,153/cow, leading to a shortfall of £243. After accounting for non-milk income, but excluding Basic Payment Scheme income, rent, interest, drawings, tax and capital expenditure (and including depreciation and a labour charge of £30,000 per full-time partner or director), businesses averaged a profit of £152/cow. Last year that was £914/cow.

The average herd size fell from 303 head to 295 head, while yields dropped from 7,906 litres to 7,256 litres/cow due to poor silage made last year. “It was only through selling stock that most businesses managed to remain profitable,” he went on to say.

According to a new survey, more than half of farmers say it has got harder to recruit staff in the ast five years and just under 9% of farms have reduced the amount of milk they produce because of labour shortages.

The average herd size fell from 303 to 295, while yields dropped from 7,906 litres to 7,256 litres per cow due to poor silage made last year. And many farmers have been hit with big tax bills, it has also been reported by the farmers.