'Dairy farmers are not slaves': Protest group warns about long-term fixed price contracts

The group said farmers should first seek legal advice if they are considering long-term fixed price contracts
The group said farmers should first seek legal advice if they are considering long-term fixed price contracts

Protest group Farmers for Action (FFA) has warned Northern Irish farmers against signing up to long term fixed price contracts because dairy farmers are not "slaves".

The FFA said it has become aware that there are a number of farmer co-operatives purchasing milk in Northern Ireland who are currently offering fixed-price milk contracts for a number of years.

The group said they have heard of some cases where farmers are "quite forcibly" offered contracts.

However, the FFA has warned against rushing into such a move, explaining that dairy farmers are not "slaves" and that they should not be denied a profit.

FFA Northern Ireland co-ordinator William Taylor said: "Firstly, the true cost of production coming back, time after time via the European Milk Board from Germany, Holland, Italy and others is consistently over 40p/l. With a profit margin added, it would finish close to 50p/l.

"Dairy farmers are not slaves, so why should they be denied a profit."

Legal advice

Mr Taylor said that farmers should not sign anything if they are considering a fixed priced long term contract against FFA’s advice at 27 pence per litre or little more.

The group said farmers should first seek legal advice.

Mr Taylor continued: "If you are worried about the cost of this, then share the cost with your dairy farmer neighbours and friends where possible. Bear in mind, if your co-op was signing a contract with a large supermarket their legal team would be involved.

"The final option for now is to sign nothing and advise your co-op that if they are not paying you a price equivalent to the top 2 highest co-ops (or other large milk purchasers in Northern Ireland) consistently, then you will no longer be with them. Note – your milk is currently needed!"

Recent contracts signed by some NI dairy farmers in 2016, for a percentage of their milk at over 20p/l to be delivered for 18 months plus contracts, are now leaving some farmers "very unhappy", according to the FFA.

"Clearly, the case for legislation on farm gate prices to return a minimum of the cost of production inflation linked plus a margin just gets stronger by the day and couldn’t come soon enough across the staples produced in Northern Ireland," Mr Taylor concluded.