Farming lobby calls for milk price rise
Disappointment over latest NI auction returns
Published Date:
28 April 2008
By Richard Halloran
Newly-elected Ulster Farmers' Union Dairy Chairman William Cromie, a milk producer from Ban-bridge Co Down, says he is disappointed with the results of the latest Northern Ireland milk auction.
The average milk price was 22.65 pence per litre. Last months milk auction average price was 22.61 pence per litre.
"Stagnant milk auction prices do not reflect the rising costs faced by farmers.
"Fuel costs are going up weekly and the overall cost of feed, fuel and fertiliser for dairy farmers this summer will be much higher than twelve months ago," he told Farming Life.
"This month's milk auction prices are 2.41 pence per litre higher than twelve months ago, but this will be more than offset by higher costs on the farm".
"I am disappointed that prices at this week's auction were not higher. This auction was for milk supplied in May, June and July. May would be a peak period of supply, but after that supplies should tighten and producers would have been hoping to see prices improve during this period".
Farmers for Action's William Taylor told Farming Life that the results of this week's auction have put every dairy farmer throughout Northern Ireland in a loss making situation.
"The average price recorded for April is a full 35% below the European Milk Board's breakeven production price," he added.
"Something must be done to improve local milk returns now."
Responding to the news that Town of Monaghan is currently offering its farmer suppliers a base price of twenty six pence per litre, the Farmers for Action spokesman pointed out that the rolling twelve month average price paid by United Dairy Farmers is now in the region of twenty five pence per litre.
"The really worrying issue is that United Dairy Farmers has moved from the top of the milk price league to the bottom in the space for five months.
"I can confirm that Farmers for Action will meet Board representatives on Tuesday, May 6, at which time all these important issues will be discussed."
The rise in European Union milk production continued to accelerate, up by 6.8 per cent in February compared to a year earlier (the rise was three per cent adjusting for the leap year in 2008).
This is the third month of significant expansion after being below year earlier levels from May to October 2007.
Butter and skimmed milk powder (SMP) production continued to rise, up by 9.8 per cent and 18.5 per cent in February 2008 (unadjusted for the leap year) compared to 12 months previously.
Cheese output grew in February by 2.5 per cent compared to 2007, with cheese/whey realisations not yet high enough compared to butter/powder to begin a major switch back into cheese manufacture.
Rising EU milk production was influenced by a 12 per cent increase in France and a three per cent increase in Germany (leap year adjusted), due to higher milk prices and good weather. However, milk supplies continued to fall in Finland, Sweden and the United Kingdom.
Liquid milk sales in the first two months of 2008 were 2.6 per cent higher compared to a year earlier.
Liquid sales for the calendar year 2007 were slightly lower (-0.5 per cent) compared to 2006.
l United comment, Farming Life on Wednesday
The full article contains 562 words and appears in n/a newspaper.
-
Last Updated:
28 April 2008 8:51 AM
-
Source:
n/a
-
Location:
belfast