According to the Ulster Farmers’ Union (UFU), most dairy farmers in Northern Ireland are not paid enough for milk to meet their production expenses.
According to UFU dairy head Kenny Hawkes, although the cost of producing milk continues to climb, the return farmers get for the product has plummeted by 40% in the past year.
“For more than six months now, nearly 20p/l (pence per litre) has been taken from milk prices in Northern Ireland and things are not getting any better,” he said.
“This decline is only an issue in Northern Ireland, as other regions have begun to recover.” Meanwhile, the majority of our dairy farmers are not paid enough to meet their production costs, much alone have enough profit to sustain a house and family.
“It’s simply not sustainable, particularly when input prices remain above average.” We’ve had several calls from members who are quite concerned about farmgate pricing and where things will wind up.”
Mr Hawkes claims that local food producers are losing money while others in the dairy industry “clearly profit.”
He continued: “If this continues, dairy farmers will be put out of business which will have serious implications for the agri-food industry and our consumers.”
The average milk base price in August 2023 was 28.47 per litre. Farmers required at least 35p/l – 36p/l to break even, according to Mr Hawkes.
He also said that the farmgate milk price in Northern Ireland is the third lowest in Europe, with only Latvia and Lithuania paying less.”I have met with NI dairy stakeholders, including all of the major banks, to discuss this situation,” Mr Hawkes said.
“Rising interest rates and their impact on farm overdrafts are a major concern right now.” Cash flow management is critical for every agricultural company. To keep their heads above water, some local dairy farmers are reducing milking from three times a day to twice a day in an attempt to decrease expenses, but this is just a temporary solution.
“We must have our fair share of the bottle.” It’s the only way to keep our NI dairy business going.”
