Stark warnings have been issued that the dairy industry in the North is facing a ‘certain doomsday scenario’ if there is a no-deal Brexit.
In a harsh warning Dairy Council NI said the industry is facing a crisis of ‘epic proportions’.
Dr Mike Johnston, CEO of DCNI claimed in a no deal Brexit trade tariffs on milk from the North to the EU to the tune of £320m, representative of 25 percent of the value the entire industry would lead to an industry ‘wipe out’.
The representative body claim that the milk price paid to farmers would ‘fall by over 10 pence per litre from its current base’ should such significant tariffs be imposed.
The statement has been met with mixed reactions from farmers on the ground.
Andrew Little a young farmer based near Maguiresbridge said, “With a no deal it may be the case but I do think this was a bit amplified to get people on the ground and politicians to make a bit of a move. Hopefully there will be support there for the farmer and we have been told will get a single farm payment 2021.”
Andrew added that one issue facing the farmer is cash flow. “Current market return for milk at the moment is 29ppl and they’re giving us around 24ppl so there is a shortfall. Cashflow is a problem. We all have bills and direct debits to pay. That will be our biggest worry.”
Reacting to the latest warnings in regard to the dairy industry, Tom Elliott former MP and local farmer commented, “Some farmers particularly those who are strong brexiteers believe it is a bit of scare mongering and that there is no reason for such regulations.
“Irrespective of whether there is a deal now or not there will still have to be further deals done between the UK and other component parts. I would imagine the Republic of Ireland and the rest of the European Union would want to try and get a deal with UK as best as they can as it will be in both their interests. Nobody wants to pay big tariffs.”
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Posted: 1:56 pm October 16, 2019