Cheap milk comes at a hard price

Under-priced food products are extremely costly for those in the agricultural industry and farmers have been particularly hard hit by sudden, steep increases. Farmers are struggling to break-even because production costs are soaring, yet supermarkets and retailers are not paying them enough to cover their costs.??

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Production costs have been steadily increasing for many years now, but recently they have spiralled for several reasons, including long term inflation as well as the ongoing war in Ukraine which has impacted costs of farming essentials such as fertiliser, fuel, feed, as well as labour costs. Some farmers have reported a huge 200% increase in these items, with merchants talking of at least a ￡100-a-tonne increase in feed. When farmers use in excess of 1,200 tonnes a year averagely (if not more), it equates to a whopping ￡120,000 increase. Meanwhile, fertiliser is prospected to increase by ￡60,000 per year. Clearly this is not economically sustainable, and farmers may be forced out of the industry altogether as they struggle to get out of the red, which will ultimately result in a shortage of produce.?

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Official figures show that over the past year, the cost of a pint of milk has risen by 17%. However, the price of milk in shops last year was lower than it was in 2012, despite the vast increase in all the production costs.?

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Farmers need the right kind of support to continue to operate and at Modern Milkman, we are committed to supporting all our suppliers. This means paying them a fair price for their product, which is the only thing that will allow them to continue to ensure that their businesses are sustainable and successful. Simon Mellin, founder and CEO of the Modern Milkman, says:??

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“Coming from a farming family, I know how hard it is to break-even, even at the best of times, let alone when costs are spiralling. It's also important to educate consumers on how food reaches the table and the cost associated with producing good-quality, fresh produce. We want products to be affordable for customers, while ensuring that farmers still receive a fair price for their yield. At the Modern Milkman, we’re proud to work closely with independent dairies and suppliers and have seen first-hand the effect surging costs have had on the farming community. We’re committed to supporting them through this turbulence by paying a fair price for fresh, high-quality products.”?

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We believe that paying suppliers enough to enable them to sustain their trade isn’t simply the right thing to do, but it also enables production to improve as they can reinvest their earnings back into their infrastructure. This helps to ensure they are continually improving the operations of their business, but also their environmental impact which is something we are incredibly passionate about at Modern Milkman. We aim to reduce our impact on the environment in every way possible, including single use plastic free sustainable groceries that can be either recycled, re-used or composted. We also look to help our customers reduce their waste output by enabling them to order the exact amount of produce they need through our easy-to-use app. Through connecting independent suppliers with our communities we are happy in the knowledge that we are not only helping to support them, but also positively impacting the environment.?

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At Modern Milkman, we are, and always have been, transparent in our pricing and have a separate delivery fee, which means that the suppliers pay is not affected by our costs in conveniently delivering fresh produce to our customers’ doorsteps. We have every intention of continuing to keep our products affordable, whilst ensuring that suppliers get the payment and support they need and deserve.?