EnviTec Biogas feels the ripple effect of dairy crisis

A STAFFORDSHIRE renewable energy firm has seen a surge in interest from dairy farmers considering selling their herds in the face of low milk prices.

EnviTec Biogas UK, which builds and runs green energy plants on farms, said it had received enquiries from farmers thinking about moving out of dairy altogether and concentrating solely on power and heat generation.

The Rugeley firm specialises in planning, building and servicing anaerobic digestion (AD) plants – facilities that turn slurry, silage and other organic material into electricity and heat.

Farmers use the electricity on the farm and sell any surplus to the grid through the Government’s 20-year Feed in Tariff system. Heat can also be used on the farm and could attract payments under the Renewable Heat Incentive.

EnviTec believes the increased interest has been prompted by low milk prices – especially where younger farmers are having to find capital to replace or refurbish ageing milking parlours.

UK sales manager John Day said: “In the short term I suppose it could benefit us, but in the longer term, the sustainable expansion of farm-scale renewable projects is largely dependent on having a healthy farming industry as a whole.

“Dairy farmers already produce the grass and maize silage that can be used as feedstocks for AD plants.

“Now some of them are looking at the viability of getting rid of herds and giving the land over to growing feed stocks and making money from electricity and heat production.

“They are in this position because their only volume route to market is the supermarkets – and no-one’s making money doing that.”

Earlier this month, Midlands dairy farmers took part in national protests about the low price they receive for the milk they produce. The outcry led to some supermarkets and large dairy processors agreeing to scrap a planned decrease in the amount paid to farmers.