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Adam and Lucy Johnstone began managing a dairy farm in south-west Scotland two years ago, initially turning a decent profit from their herd of 60 cows. However, in recent months, the payment they receive per litre of milk from the major dairy company Arla has dropped sharply by 25%, now falling below the actual cost of production. Faced with this financial strain, the couple is contemplating either selling their milk directly to consumers in Moffat or possibly exiting the farming business altogether.
This situation is not unique to the Johnstones and reflects a broader crisis among dairy farmers across Scotland. The National Farmers Union for Scotland (NFUS) notes that while dairy farmers are accustomed to price fluctuations, the current rapid and severe price decline is unprecedented. Arla attributes this downturn to a global milk oversupply, paired with stagnant demand for milk and dairy products such as cheese and yogurt. The Johnstones report it costs them 38.5p to produce a litre of milk, yet they currently receive only 35.7p per litre from Arla. Producing around 35,000 litres each month means they are earning approximately £1,000 less than what it costs to maintain their herd, a shortfall that is threatening the viability of their farm.
In response to the falling prices, the Johnstones are considering supplementing their income by selling milk directly to local customers. They appreciate the support from nearby residents, businesses, and hospitality providers, which demonstrates local recognition of farmers’ essential role. Nevertheless, the ongoing stress is weighing heavily on the family. Adam expressed the emotional toll, stating, “It’s soul-destroying to be honest. There are a lot of benefits that come from farming that aren’t financial- we have a great way of life and get to spend a lot of time with the kids. But the financial pressures are there day-in, day-out and don’t go away when you go to sleep. We’ve had multiple conversations about getting out of farming.”
Industry-wide, UK milk production is forecast to surpass 13 billion litres this year, yet prices for products like mild cheddar, butter, and skimmed milk powder are nearing five-year lows. Several large processors including Arla, Muller, and First Milk have been reducing the prices paid to farmers, citing global market conditions as the cause. Arla’s spokesperson explained that the increased global milk supply has depressed commodity prices, negatively impacting payments to farmers. Meanwhile, other dairy firms highlight the complex global trade around cheese and dairy products, noting increased competition from producers in the US and New Zealand. NFUS is urging greater transparency and fairness along the supply chain, with committee chairman Bruce Mackie emphasizing that “Processors must communicate clearly and fairly with suppliers. Farmers deserve transparency and trust during such a critical time.”
On the local level, the Johnstones are struggling to keep the farm afloat amid these challenges. Adam, a former marine and amputee who manages his condition with a prosthetic leg, often pushes through physical pain to continue working. Lucy fears the toll this is taking on their family, saying, “We have two young children that he wants to run around with and at the minute he’s giving his all to that farm. It’s not to give us a good salary, it’s to keep us afloat, it’s survival mode and it’s not fair on him.” The Johnstone family’s experience highlights the profound difficulties facing dairy farmers today, caught between rising production costs, falling prices, and the pressures that strain both their livelihoods and wellbeing
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