Bulk of milk costs are added outside the farm gate
Farmers and their leaders have to get tough and drive home the message that the biggest slice of the cost of food is added outside the farm gate, and that is where the scope is greatest to bear any necessary food price cuts.
The battle for market share in the liquid milk trade is typical. Dairy farmers who supply the milk are battling for survival, as their profit margin comes under more and more pressure. But three-quarters of what the consumer pays for milk is added outside the farm gate.
