A farming union has said that it expects base milk price to rise and if not processors need to explain why market gains are not being shared with primary producers.
Ulster Farmers' Union dairy chairman William Irvine said: “Dairy commodity prices have stabilised and in fact we have seen two weeks of strong returns at key global dairy auctions. The UFU MPI has increased by nearly a penny during the same period.
“This leads us to question, when will we see an increase in base milk price here?”
Mr Irvine said that farmers already feeling short-changed.
There has been minimal increase in base milk price over recent months and the long awaited exchange rate boost, promised by processors, is still yet to materialise, he said.
“You can understand why dairy farmers are closely scrutinising milk cheque statements. It is clear that there are profits being made but not shared,” said the dairy chairman.
Mr Irvine said that the impetus is now on dairy processors to at the very least stabilise base price for April milk, and also to increase price for peak supply volumes.
“If dairy processors are serious about securing their supplier base in the future, they must demonstrate a wiliness to pay their suppliers a sustainable milk price that accurately reflects the market,” said Mr Irvine.
