The dairy industry is facing challenges in 2022 due to rising production costs, leading to a decrease in industry margins. The price of milk at the source, paid to farmers, has increased by 45% this year, while the retail price of liquid milk has only increased by 25%. The industry is particularly affected by high gas and electricity prices due to its energy intensity. Small and medium-sized dairy companies, which make up over 99% of the industry, are struggling to survive. The Federation is calling for fair remuneration for all parts of the food chain to prevent company closures, job losses, and the disappearance of milk farms.