No dairy enterprise can ‘survive’ present milk costs – Sugden

East Derry MLA, Claire Sugden, has stated dairy farmers can not proceed to lose cash on milk and that few companies can survive present costs.

Sugden cited current statistics from the Ulster Farmers’ Union (UFU) which revealed that, in 2022, farmers made 7p for each two litres of milk they produced, whereas this yr it’s costing them 13p to provide the identical quantity.

“These figures merely don’t add up and imply that many farmers are usually not even making sufficient to cowl manufacturing prices, not to mention make any revenue,” Sugden stated.

“No enterprise can survive these sort of economics.

“With retail costs persevering with to extend and manufacturing prices reducing since 2022 you’ll count on farmers to be making extra, not much less.”

Sugden added that “one thing within the milk provide chain has gone very unsuitable” and must be remedied as quickly as doable.

“Dairy farmers have to make revenue, like all enterprise,” she stated.

“Given nearly all of farms in Northern Eire are smaller family-run farms, this implies paying payments and the on a regular basis prices of residing.

“They’re already being hit laborious by excessive rates of interest. If these monetary pressures aren’t resolved quickly then it merely received’t pay to be in dairy farming – one in every of Northern Eire’s greatest industries.”

UFU

The UFU has stated 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 stated he believes income 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 stated.

“For greater than six months now, practically 20p/L has been taken from milk costs in Northern Eire and issues are usually not getting any higher.”

Hawkes stated the biggest proportion of Northern Eire’s 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.”

He stated it’s not sustainable for farmers, particularly when enter costs stay larger than common.

“It’s completely disheartening to as soon as once more, must name out the failing dynamics inside our meals provide system.

“If this continues, dairy farmers will probably be put out of enterprise which can have critical implications for the agri-food trade and our customers.”