Fermanagh farmers concerned at milk price drop

FERMANAGH’S dairy farmers are facing a worsening financial squeeze this winter, with farm gate milk prices falling sharply and expected to drop by a third in the coming months.
The Ulster Farmers’ Union (UFU) has warned of a tough season ahead, noting current prices – approximately 35.5–36p per litre – were slipping below the cost of production, creating what they describe as an unsustainable outlook.
UFU deputy president John McLenaghan said, “It’s a bleak outlook for our dairy farmers here in Northern Ireland this winter.
“Whole milk has seen an inflationary increase of 12.6 per-cent since 2020 and though retail prices continue to rise significantly – by around 37 per-cent in five years – NI farmers, in many cases, are seeing a decrease in the price received for their product.”
He added, “This imbalance between low farm gate milk prices and premium rates for milk in stores is a result of big supermarket chains using milk as a loss leader to draw customers in.
“It not only leaves farmers struggling to make a fair wage, but consumers aren’t seeing the benefit of these low milk rates at the checkout either.”
McLenaghan warned, “The falling milk prices are putting immense pressure on our dairy farmers, while food inflation continues to put financial pressure on the consumer and the reality is, it’s unsustainable.
“If farmers continue getting shortchanged for the products that stock our shelves, they will inevitably be forced out of business; supplies will drop, food security will worsen and prices at the till will continue to soar.”
He said, “The Ulster Farmers’ Union will continue to advocate for the fair treatment of Northern Ireland’s dairy farmers and to promote the vital role they play in our agri-food supply chain.”
The UFU statement came as Lakeland Dairies confirmed further price reductions for October milk.
In the South, the board has set a price of 40.25c/L at 3.6 percent butterfat and 3.3 pre-cent protein, including a 0.5c/L sustainability incentive, a 4c/L cut from September.
In the North, Lakeland Dairies will pay 32.3p/L for October supplies — including the sustainability incentive — a decrease of 3.5p/L from September.
In its statement, the processor said: “Significant market pressure persists as global milk supplies continue to grow from an already strong base.
“Demand is struggling to keep up, which is impacting on butter, cheese and powder returns adding continued pressure on farmgate prices.
“Lakeland Dairies will continue to monitor the markets and will endeavour to support our farmers with the best milk price possible in line with market conditions.”