Most dairy farmers in Northern Ireland and not being paid enough for milk to cover their production costs, according to the Ulster Farmers’ Union (UFU).
UFU dairy chair Kenny Hawkes said that although the cost of producing milk continues to rise, the return farmers are receiving for the product has dropped by 40% over the last year.
“This decline is only an issue in NI as other regions have started to show recovery. Meanwhile the largest proportion of our dairy farmers are not receiving enough to cover the cost of production let alone have any profit left over to support a home and family.
“It’s simply not sustainable, especially when input prices remain higher than average. We’ve been inundated with calls from members who are extremely anxious and uptight about farmgate prices and where things are going to end up.”
Mr Hawkes said local food producers are losing out while others in the dairy chain “are clearly making money”.
He said: “If this continues, dairy farmers will be put out of business which will have serious implications for the agri-food industry and our consumers.”
In August 2023, the milk base price average was 28.47 per litre. To break even, farmers needed to be receiving at least 35p/l – 36p/l, Mr Hawkes said.
He also said that NI farmgate milk price, in comparison to other areas of Europe, is the third lowest, with only Latvia and Lithuania paying less.Mr Hawkes added: “Alongside the [UFU] dairy policy officer, I have met NI dairy stakeholders including all the major banks to discuss this situation.
“A major concern right now is rising interest rates and the impact it is having on farm overdrafts. Managing cash flow is key for any farm business. To keep their head above water, some local dairy farmers are cutting back from milking three times a day, to twice a day to try to reduce costs, but this is only a short-term solution.
“We need our fair share of the bottle. It’s the only way to sustain our NI dairy industry”.
