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NI Dairy Farmers Disappointed by Auction

24 December 2012

NORTHERN IRELAND - The Ulster Farmers’ Union (UFU) says farmers will be very disappointed and concerned with the outcome of the December Milk Auction which saw milk prices fall by almost a penny per litre; 42 million litres of milk produced on local dairy farms was traded at an average price of 29.35 pence per litre.

UFU Dairy Chairman, Andrew Addison, said: "Milk prices have fallen again for two consecutive months and this is a big worry for dairy farmers. Costs of production have risen sharply in 2012 and the winter months are when costs are at their peak. Dairy producers need very strong auction prices this winter to offset these costs.

"While the December auction price is higher than the corresponding auction last year, it is nevertheless a big disappointment to see prices fall back below the 30 pence per litre threshold. Producers will strive to be as efficient as possible in the coming months but it will be very important that milk auctions in the early part of 2013 return strong prices."

UFU President, Harry Sinclair, said across almost every farming sector prices were failing to match increasing costs of production. He said the status quo in the food chain could not continue and highlighted that producer profitability must be a key area for the Agri-Food Strategy Board to address in 2013.

TheCattleSite News Desk

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