The Ulster Farmers’ Union has claimed dairy prices are falling short, with positive gains from a favourable exchange rate not being shared with farmers.
UFU dairy chairman William Irvine said dairy farmers feel short-changed.
“Local dairy prices are still below what the market can return. A weak pound means our exports are more competitive yet the gains that delivers are not being shared with farmers,” said Mr Irvine.
The UFU believes that the exchange rate should be boosting prices by between 2.5 and 3 pence a litre.
“We raised this with processors and were told forward selling was why farmers weren’t seeing an immediate boost in prices. This was months ago. These contracts will have run their course now.
“Processors must explain why the gains made from the exchange rate have not been shared with farmers. There is no excuse – action must be taken and farmers treated fairly,” said Mr Irvine.
A recent report highlighted that since the drop in the value of sterling, there is around £200 million unaccounted for in the agricultural supply chain.
The NFU has called for milk buyers to recognise the strength of current markets and start paying fair, sustainable prices to their milk suppliers.
“Gains are being made but not shared. This is unacceptable,” warned Mr Irvine.
