First Milk has immediately (Friday, September 29) introduced that its member milk worth will scale back by 0.85ppl from November 1, 2023.
The farmer-owned dairy cooperative mentioned this may take its manufacturing customary litre to 36.00ppl, together with the member premium.
Vice chair and farmer director of First Milk, Robert Craig, mentioned: “We perceive that this can be unwelcome information for our members, particularly heading into the winter, as prices on farm stay stubbornly excessive.
“Dairy demand has been decreased for a number of months, placing downward stress on pricing, which has impacted our returns.
“As at all times, we are going to proceed to work exhausting to maximise our members’ milk worth within the months forward.”
Initially of the month (Friday, September 1), First Milk introduced that its member milk worth can be held from October 1, 2023.
On the time, the cooperative mentioned its milk worth will stay at 36.85ppl for a producing customary litre, together with the member premium.
Dairy farmers getting ‘shafted’ on milk worth
Earlier this week, the Ulster Farmers’ Union (UFU) in Northern Eire mentioned returns for dairy farmers for milk are insufficient and that they’re “getting shafted” on costs.
Based on the union, returns for milk are down 40% in comparison with this time final 12 months and the vast majority of dairy farmers are usually not incomes sufficient to cowl manufacturing prices.
In addition to this, UFU dairy chair Kenny Hawkes believes earnings are being made additional up the availability chain.
“Our meals producers are getting shafted whereas others within the dairy chain are clearly making a living,” he mentioned.
“For greater than six months now, almost 20p/L has been taken from milk costs in Northern Eire and issues are usually not getting any higher.
“This decline is barely a problem in Northern Eire as different areas have began to point out restoration.
“In the meantime, the biggest proportion of our dairy farmers are usually not receiving sufficient to cowl the price of manufacturing not to mention have any revenue left over to help a house and household.”
Hawkes mentioned it’s not sustainable for farmers, particularly when enter costs stay greater than common.
“It’s totally disheartening to as soon as once more, need to name out the failing dynamics inside our meals provide system.
“If this continues, dairy farmers can be put out of enterprise which could have severe implications for the agri-food trade and our shoppers.”