Milk Price Auction Blow for Dairy Farmers
UK - Ulster Farmers’ Union Dairy Policy Chairman William Cromie, says the results of the May Northern Ireland milk auction are a blow to local milk producers, who are struggling to cope with soaring feed, fuel and fertiliser production costs.
26 May 2008
2 minute read
The average milk price at this weeks auction was 24.28 pence per litre. This is just over a penny ahead of prices in May 2007, but the UFU says dairy farmers production costs have risen by approximately five pence per litre during the same period.
In a message directed at milk processors in Northern Ireland, William Cromie said dairy farmers should not be taken for granted and if profitable farm gate prices did not emerge then producers would consider their future in the sector.
William Cromie said; “Milk processors should not underestimate the strength of feeling among producers about current farm gate prices. Dairy farmers costs have rocketed and they are facing major investment decisions to comply with the Nitrates Directive. Producers need confidence to invest in their businesses but instead there is a general feeling that the industry is less well off now than it was twelve months ago. Milk auction prices may be a penny better than a year ago, but our production costs have gone up by approximately five times that amount. These economics simply don’t add up to profitable dairy farming”
William Cromie added; “The UK Actual Milk Price Equivalent in April is 24.9 pence per litre and that should at least be the farm gate figure paid to local farmers. Consumer prices for dairy products are high, the cheese market is still strong and the euro / sterling exchange rate is very much in our favour. Milk processors need to convert these positive factors into better prices for dairy farmers who have to offset their rising costs”.
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