Meaningful base milk price increase overdue, says UFU dairy committee

UFU dairy committee chair Cyril Orr said: “Dairy farmers in Northern Ireland welcome the recent announcements by dairy processors introducing out-of-season bonuses to their monthly milk cheques.

"While this bonus incentivises and rightly rewards farmers for maintaining milk production during the winter months, they must not be used to disguise the need for meaningful and justified increase in the base milk price paid for every litre of milk they produce. Any increase in base price cannot be hidden by the application of seasonal bonuses. While these bonuses are temporary, farmers need a sustainable, long-term base price that reflects market returns and the realities of milk production."

The call comes as dairy commodity markets continue to strengthen, with prices for key products increasing steadily since July.

Mr Orr added: "International dairy commodity prices experienced a significant correction during the first half of 2026. There has been a meaningful recovery since July, with the Global Dairy Trade price index recording increases across much of this period.

"Since July, the index has risen by 9.8%. Over the same timeframe, Dutch quotations for whole milk powder and skimmed milk powder prices have increased by 24.6% and 37.9% respectively. Meanwhile, figures published by AHDB show that UK mild cheddar prices have increased by 14%."

The UFU also highlighted reports of declining milk production both nationally and internationally.

"Across Europe, many countries have reported the impact of this summer's heatwaves on milk yields. Falling milk volumes are creating opportunities for stronger market returns. While global demand for dairy products continues to grow, the rate of growth is slowing, which is helping to support commodity prices," said Mr Orr.

Farmers continue to face significant input cost pressures.

"Farmers are still dealing with substantial increases in production costs. Feed prices rose by £15 to £20 per tonne at the end of September and are expected to increase by a similar amount again in January. Continued pressure from high fuel, electricity and fertiliser costs cannot be ignored.

"Improved market sentiment is reflected in the UFU milk price index, which has increased by 19% since July. As commodity returns continue to strengthen, these gains must be passed fairly down the supply chain and back to dairy farmers. A sustainable milk price is essential to allow farmers to cover rising costs, continue investing in their businesses and maintain future milk production,” said the UFU dairy chair.