Farmers warn milk processors not to use winter bonuses as alternative to 'meaningful' increases

A dairy committee recently renewed its call for greater transparency about how prices paid for milk are calculated
A dairy committee recently renewed its call for greater transparency about how prices paid for milk are calculated

Farmers have warned milk processors must not use winter bonuses or other payment structures as an alternative to a 'meaningful' increase in the base milk price.

Ulster Farmers’ Union (UFU) dairy chairman, William Irvine, has urged processors to ensure milk price increases reflect stronger global dairy markets.

“For the past 18 months farmers have struggled with returns well below the cost of production. After such a deep recession, it will take more than a few price increases to get farm businesses back on track and for farmers to feel ready to plan ahead in a still fragile market,” said Mr Irvine.

The UFU dairy committee recently renewed its call for greater transparency about how prices paid for milk are calculated. It sees this as a policy priority and a potential 'win, win' for farmers and processors because it could build trust and better relations in the industry.

Mr Irvine continued: “Back in 2012 the EU Milk Package was launched to strengthen the position of farmers within the supply chain. Four plus years on there is little evidence of that happening here, so we have to find new ways to deliver the greater strength farmers need. More trust between farmers and processors would help create a better and fairer supply chain – and that would benefit all players in the dairy industry,” said Mr Irvine.

The UFU dairy committee has set out a number of key priorities for 2017, on top of the continuing drive to secure better milk prices and transparency. These include a review of the 2012 Voluntary Code of Practice, a call for retailers to be open on pricing, more information from processors on their production costs and completion of the dairy industry supply chain review.

“In the context of Brexit we will also focus on what outcome would best suit dairy farmers, and on how a risk management approach to supporting the industry might work in practice,” said Mr Irvine.