The Ulster Farmers’ Union (UFU) has mentioned returns for dairy farmers for milk in Northern Eire are insufficient and that they’re “getting shafted” on costs.
In accordance with the union, returns for milk are down 40% in comparison with this time final yr and nearly all of dairy farmers are usually not incomes sufficient to cowl manufacturing prices.
In addition to this, UFU dairy chair Kenny Hawkes believes income are being made additional up the provision chain.
“Our meals producers are getting shafted whereas others within the dairy chain are clearly being profitable,” 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 just a difficulty in Northern Eire as different areas have began to indicate restoration.
“In the meantime, the most important 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 isn’t sustainable for farmers, particularly when enter costs stay increased 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 shall be put out of enterprise which can have critical implications for the agri-food business and our customers.”
NI farmgate value
In August 2023, the milk base value common was 28.47p/L. To breakeven, farmers wanted to be receiving not less than 35p/L – 36p/L, the UFU mentioned.
“Evaluating native costs to what’s been taking place in Europe, the Northern Eire farmgate milk value is the third lowest with solely Latvia and Lithuania paying a cheaper price,” Hawkes mentioned.
“On common, the EU farmgate value was 7.62p/L increased. In the meantime, there’s a distinction of 4p/L between Northern Eire and Britain’s farmgate milk costs.”
Hawkes mentioned he has met with the dairy coverage officer and and Northern Eire’s dairy stakeholders in main banks to debate this example.
“A serious concern proper now could be rising rates of interest and the influence it’s having on farm overdrafts,” he mentioned.
“Managing cashflow is vital for any farm enterprise and as we sit on the mouth of winter coupled with long run pressures, fears are excelling.
“To maintain their head above water, some native dairy farmers are chopping again from milking 3 times a day, to twice a day to attempt to cut back prices, however that is solely a short-term resolution.”