Worrying trends for dairy industry – Lockhart

Speaking from Westminster, the Upper Bann representative said: “We have a deeply worrying situation in our dairy industry, where prices are continuing to decrease and the difference between GB and NI farm gate price per litre is significant.

"Global dairy markets have showed ongoing and increasing weakness over recent months, reflecting a reduction in demand for dairy product whilst supply remains high. There is a great deal of uncertainty facing the sector in the short-term.

"This has been exacerbated with the more political development of Russia’s decision to pull out of the Black Sea Grain Initiative. which allowed the free flow of fertiliser and grain from Ukraine. Whilst this agreement had been in difficulty for some time, the concern now is that input costs will rise once again. The effect will be additional pressures on farms as cost of production increases in the context of falling farm gate prices.

"At times like this it is vital that the supply chain functions in a fair way, that pays the producer a fair price for their product. The temptation at times like this is that processors and supermarkets jump to reduce their price paid. This must be avoided if at all possible, particularly as we look to the autumn/winter period where input costs will rise.”