Ulster Farmers’ Union dairy committee chairman, William Irvine, has said farmers are “rightly concerned” about the growing gap in base milk prices.
“The fodder issue is on everyone’s mind. We are facing a potentially costly winter with more bought in feed, and need a strong cash flow now to prepare for that. The price disparity between local processors simply cannot be justified,” he said.
2.5p/L gap
The committee chairman and Co. Armagh dairy farmer says farmers receiving a milk price 2.5p/L less than what others are being paid are “automatically at a disadvantage” at what is already a difficult time for the industry.
“Put simply, many farmers feel short-changed,” he added. “What they see is one processor paying what the market is capable of delivering, while at the other end of the scale, others are seemingly dragging their heels.
The reason for this disparity needs to be explained by these businesses, whose suppliers are becoming more and more disillusioned.
The UFU said it is urging all dairy processors in Northern Ireland to “pay what the market is returning”.
“Only then will local dairy farmers have a chance of tackling what could be a challenging autumn and winter,” said Irvine.
How the prices stack up
The board of the Northern Ireland’s milk processor, Dale Farm, agreed to increase its milk price for June supplies to 28.2p/L.
When added to the membership loyalty bonus of 0.3p/L, it means the co-op’s 1,300 members received a base price of 28.5p/L – up 1p/L on the price paid for June supplies.
However, other major firms in Northern Ireland have retained their milk price allowing a significant gap to develop. Rival Lakeland Dairies paid its suppliers in Northern Ireland 26.5p/L.
LacPatrick suppliers saw an increase of 0.5p/L on May’s price; however, the boost still only brings the processor to 26.5p/L.
Meanwhile, in Great Britain, some processors, such as Arla, have even topped the 30p/L mark.
