Price cuts have taken farm gate milk prices (FGMP) well below the cost of production.
The crisis in Sweden follows a similar situation in the UK, where raw milk price reductions were announced across the board by processors, including Arla.
However, following a number of high-profile demonstrations by dairy farmers, processors including Arla, Robert Wiseman Dairies and Dairy Crest agreed to delay their planned price cuts while talks with farmers were on-going.
According to reports, Arla has slashed the price it pays to dairy farmers for their raw milk five times in the last year – citing a reduction in global market prices.
