Northern Ireland-Dairy farmers in crisis.

NORTHERN IRELAND-Further losses for dairy farmer

The Ulster Farmers’ Union says a further fall in prices at milk auction is a serious blow to dairy farmers.

44 million litres of milk were sold at the auction for an average price of 17.82 pence per litre, down from 18.5 pence per litre in the January auction.

UFU Deputy President John Thompson said dairy farmers were now facing serious losses, caused by high winter costs for feed and energy, and low farm gate prices. The Union highlighted that investment in slurry tanks on many dairy farms to meet the EU Nitrates Directive was compounding the financial difficulties for many dairy businesses. The UFU says the survival of many local dairy farms now depends on the EU Commission and milk processors.

Mr Thompson said; "The EU Commission re-introduced dairy export refunds in January and a further small increase was agreed at the latest EU Dairy Management Committee. These were very welcome interventions by the Commission, but we now need a much higher rate of refund to stabilise the sector".

Mr Thompson said dairy farmers continued to ask why prices are so low at the auction, given that liquid milk prices are still strong, currency is strongly in our favour and export refunds are now in operation.

"Producers desperately need an upturn in prices," he said.