NI dairy farmers call for end to retrospective payment system

Northern Ireland is the only part of the UK where a retrospective payment system is the norm
Northern Ireland is the only part of the UK where a retrospective payment system is the norm

Northern Irish dairy processors have been told to end the practice of paying farmers retrospectively for milk, bringing the region in line with the rest of the UK.

The Ulster Farmers' Union (UFU) says this would be fairer and would bring Northern Ireland in line with best practice elsewhere in the United Kingdom.

The union's Executive Committee met last week via Zoom and unanimously ratified the change in milk pricing.

Prior to the Executives decision, the UFU dairy committee agreed to end retrospective milk pricing and met with dairy processors, only for it to be dismissed by them.

UFU deputy president David Brown said: “At the beginning of November, First Milk, a GB based cooperative, announced the price their farmers would receive for milk produced in December.

"But here farmers will not know until mid to late January what they will receive for December milk. That is simply wrong.”

Mr Brown added that with fertiliser, fuel and other costs rising it was vital that farmers knew in advance what they would be paid.

“This is key to managing cash flows, but under current pricing arrangements something as simple and logical as that is impossible.”

The UFU says moves to end retrospective milk pricing would be seen as a sign of goodwill and commitment to farmers by dairy processors.

Northern Ireland is the only part of the UK where this payment system is the norm, with dairy the only farming sector where price calculations are retrospective.

"There is no good reason for this approach and change is long overdue," Mr Brown said.

"Delivery on this simple request would bring goodwill and transparency, and both are needed to give farmers confidence for the future.”