DAIRY farmers are facing cuts to milk prices at what is one of the busiest times of the farming calendar. As calving gets underway and cows return to fields milk production increases, but uncertainty clouds the future of the dairy industry as processors announce price cuts.
Lakeland Dairies this week announced a cut to its March milk prices, referring to Covid-19 and the impact on markets. In the North farmers supplying Lakeland Dairies will see a reduction of 1.5pence per litre on the February price. That means they will now receive 23.75p/litre.
The retail price for one litre of milk sits at approximately three times that but varies between retailers. A recent report from the Department of Agriculture states that the average farm gate milk price sat at 26.82p/litre in January this year.
Cross border dairy processor Lakeland Dairies also announced temporarily laying off of 140 staff this week. It is one of Cavan’s largest employers with nearby Killeshandra among the most impacted plants.
Dairy farmers here supplying other milk processors have told of worry that milk prices will fall.
Commenting Tempo dairy farmer Pat McGrade said, “At the minute processors like Glanbia have done all in their power to keep every factory going. The tanker drivers are also playing their part.”
While milk prices drop, meal prices rise, slashing farmers profit margins in turn. In Fermanagh it is understood animal meal may rise by as much as £13 per tonne in the days ahead.
Mr McGrade speaking about feeding livestock in the shed said, “The milk is going to come down in price and that’s it, what can the dairy farmer do? In some cases it’s not even paying as it is. A lot of cows are not out in the fields yet and it’s a costly time for farmers. Cows are being fed in the house with meal making it more expensive.”
Mr McGrade referred to health benefits of dairy products. “One of the best things you can do to help boost your immune system is drink plenty of milk,” he claimed.
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