The Ulster Farmers’ Union has renewed its call for greater transparency in the dairy industry about how prices paid to farmers for milk are calculated. Speaking after the dairy committee’s monthly meeting, its chairman, William Irvine – a dairy farmer in County Armagh – said the UFU had been pressing this case for a considerable time. “We see now with the worsening relationship between farmers and processors why this is so necessary – and we simply do not understand why it cannot be delivered,” he said.
Article key points
- UFU is calling for greater transparency in the dairy industry about how prices paid to farmers for milk are calculated.
- Relationship between producer and processor is getting worse so something needs to be done to restore trust.
- Transparency combined with voluntary code of practice on pricing are key to better relations.
- UFU also planning to meet retailers on the back of recent retail price increases of dairy products.
- The calls were made following the UFU's monthly dairy policy committee meeting.
The UFU says there is also a wider case for a review in Northern Ireland into milk pricing, and whether the fairness farmers need in the supply chain is being delivered by dairy processors. Mr Irvine said it was ironic having to ask for this, when those buying milk are farmer owned businesses that should understand the financial stress their farmer suppliers have faced for the past 18 months.
“Transparency and a voluntary code of practice on pricing are the key to better relations. Processors must be able to see that the complete distrust their suppliers now have for them is not healthy for any industry,” he said. The UFU dairy committee is also planning to meet local retailers on the back of recent retail price increases of dairy products.
“We keep making the case that farmers are angry and frustrated. But processors seem happy to continue putting their collective heads in the sand about this. I understand that things have not been easy for them either. But they have to be made to realise that they will only have the milk supply they need to succeed as processors if farmers see any prospects of their businesses returning to profitability. Transparency would be a key step in rebuilding relationships. We want that to happen, but we are not convinced by their behaviour that processors are interested in better relationships or the financial pain being faced by those that supply them,” he said.
