Dairy farmers struggle as shop prices remain high

FERMANAGH farmers have been questioning why the gate price for milk keeps dropping, while the cost of dairy remains stubbornly high in the shops.
Local farmers had already seen prices drop to below 35p per litre for their milk, but last week Lakeland Dairies, which collects milk from hundreds of local farmers, announced its price for November would be less than 30p per litre.
In contrast, a litre of milk in the shop can vary from £1-£1.50. Processed dairy products, such as butter, cost much more, with prices remaining stubbornly high for consumers.
One local farmer told the ‘Herald, while the current situation isn’t the worst he has ever seen regarding farm gate prices, combined with other factors and rising costs, it may push some out of the industry.
“Dairy farming is not sustainable for families at the minute,” he said. “They talk about it coming back at the second half of next year – the second half of next year could be December.
“They are telling farmers the cost of living crisis is over, and the price of butter is coming down, but if you’re a mother out buying for your children I’m sure you won’t have seen any drop.”
Meanwhile, following a meeting of the four UK farming unions, including the Ulster Farmers’ Union (UFU), a joint open letter has been written to milk processors urging responsible behaviour during what is expected to be a particularly testing period for the dairy sector.
In the letter, the chairs of each of the union’s dairy boards highlight the need for transparency and good communication between farmers and processors during these challenging times.
Milk buyers are reminded of the importance of complying with the fair dealing legislation and maintaining open channels of communication and transparency with their suppliers. The farming unions also encourage dairy farmers to engage proactively with their milk buyers, ensuring that the milk produced meets market needs.
UFU dairy chairman Cyril Orr said: “As dairy farmers, we are entering a challenging period marked by significant market uncertainty and pressure on farm gate prices.
“It is more vital than ever that farmers can place trust in their processors. We need to see greater openness, transparency and genuine collaboration within milk pools.
“This is essential to ensure a sustainable future for dairy farmers.”