Müller is serving 12-month notices to stop contracts with 14 dairy farmers in Aberdeenshire as part of plans to reduce overall milk volume.

Milk surplus is being blamed by the major milk company as it seeks to reduce the amount of milk it purchases from its 230 milk suppliers in Scotland.

Most of its remaining dairy farmers will face additional haulage charges for transport of milk to England for processing.

Suppliers who are already being charged a haulage charge of 1.75p/l will not be subjected to the changes

Farmers who have increased their volume of milk by over 15% face an additional charge of 0.85p/l, those who increased between 5% and 15% will see an additional charge of 0.55p/l and those who saw an increase of less than 5% in their milk production will have a charge of 0.25p/l.

The charges are due to come in February 2020 and reviewed annually.

Suppliers who are already being charged a haulage charge of 1.75p/l will not be subjected to the changes.

The Farmers Journal understands that the dropped farmers are considering their options. Due to there being no milk processing in the northeast after MÜller shut its plant a number of years ago, all milk would have to be transported to the central belt. This would increase the cost of the milk and make obtaining a new contract challenging. This situation isn’t helped by record surpluses of liquid milk.

It takes six beef cows to equate to one dairy cow for output

Some farmers reaching the end of their career will see this as a time to stop dairying, while younger producers are exploring options.

On typical Aberdeenshire farms, no other type of farming can compete with dairying for monthly farm income. It takes six beef cows to equate to one dairy cow for output.

New contracts

Aberdeenshire has efficient milk producers and access to nearly half a million milk drinkers in the area.

Some processors will be taking a look at the dairies to see if new contracts could be offered but the key question will be how much will they take and what will they pay.