Dairy prices falling short - UFU
Thursday, 16 March, 2017
Ulster Farmers’ Union dairy chairman William Irvine claims dairy prices are falling short, with positive gains from a favourable exchange rate not being shared with farmers. “Dairy farmers feel short-changed. Local dairy prices are still below what the market can return. A weak pound means our exports are more competitive yet the gains that delivers are not being shared with farmers,” says Mr Irvine.
The UFU believes that the exchange rate should be boosting prices by between 2.5 and 3 pence a litre. “We raised this with processors and were told forward selling was why farmers weren’t seeing an immediate boost in prices. This was months ago. These contracts will have run their course now. Processors must explain why the gains made from the exchange rate have not been shared with farmers. There is no excuse – action must be taken and farmers treated fairly,” says Mr Irvine.
A recent report highlighted that since the drop in the value of sterling, there is around £200 million unaccounted for in the agricultural supply chain. “Gains are being made but not shared. This is unacceptable,” warns Mr Irvine.