NI farmers call for more 'transparent' milk prices

The Ulster Farmers' Union has called for more "transparent" milk prices as winter approaches.

With seasonal bonuses about to be paid, the UFU said dairy processors must be transparent about how prices are calculated.

The union's dairy committee chairman, William Irvine, said bonus payments cannot be used to mask changes to the base milk price, which the UFU insists could not be justified.

Mr Irvine explained how dairy markets are not easy to read. He pointed to fat prices rising in the summer, and cheese and powders seeing stable returns.

However, since September negative sentiments have hit markets and weakening cream prices have driven down butter.

Despite that, Mr Irvine said there is no case for any change to base milk prices.

He said: “Dairy fat prices are still ahead of their twelve-month average and there has been limited activity on markets.

“Christmas demand could change that and the falls now are likely to be temporary. On that basis processors should give farmers the benefit of the doubt, by leaving prices where they are.

“Above all they must be transparent about how prices and seasonal bonuses are calculated,” Mr Irvine said.