Northern Irish dairy farmers have slammed recent milk price reductions as 'appalling' and 'unjustified'.
Prices have fallen to around 24.50p per litre in Northern Ireland amid rising input costs.
The continued price drops by local dairy companies has led many farmers to question processor performance and acumen.
The Ulster Farmers’ Union (UFU) say the the reductions 'could not come at a worse time'.
It comes as dairy processors ignored the union's calls earlier this month to pay a 'reflective and true' milk price to farmers
UFU dairy committee chairman, Mervyn Gordon said: “It is extremely disappointing that local processors continue to cut prices and continue to refuse to pay a fair price for milk.
“We have analysed the data and it is clear there is room in the market to pay producers a reflective and true price for their milk.”
He said many dairy farmers are currently 'struggling' as many are produce milk below the cost of production.
“Things are about to get worse as the oil price shocks from Saudi Arabia reverberate through the farming sector.
“Producing milk below cost, as input costs rise is completely unsustainable and processors are playing a dangerous game with their suppliers,” said Mr Gordon.
Data from AHDB shows processors in Britain consistently outperforming their Northern Ireland counterparts every month since July 2018, the longest sustained gap since 2015.
The UFU says NI processors are 'lagging' behind their British competitors: Mr Gordon added: “What’s going on in their businesses? They are failing their producers and it is unfair that farmers are footing the bill for external business decisions.
“It’s time processor CEOs step up and explain why their businesses are under performing, and have been for the past 15 months.”
Looking at the markets, cream and butter commodity prices have shown sustained signs of recovery in recent weeks.
And with Muller and Arla holding on to cream, prices in Britain are on the up.
This upsurge in activity has seen UK butter rising past the £3,200/tonne-mark.
Mozzarella prices also saw the most notable increase in months with spot prices by €100/tonne and prices of other products are stable at consistently higher levels.
Furthermore, the price index in the latest New Zealand milk auction is up 2 per cent.
Mr Gordon said: “All signs point towards a market where there are gains to be made and shared throughout the supply chain.”
