Processors must step up to the mark – Irwin

Mr Irwin said he had been approached by a number of dairy farmers in recent days concerned that the financial pressures facing the sector must be acknowledged by processors given the realities of raw material and fuel price rises.

Mr Irwin said: “This is an issue that is growing in concern amongst the dairy sector and especially so as the industry faces a massive rise in production costs. Taking into account the fact that in recent months energy prices and fuel prices have risen dramatically, it is obvious then that the margins by which dairy farmers are operating under are narrowing rapidly, that is totally unsustainable.”

He added: “One huge issue of concern is the cost of fertilizer which in recent times has actually trebled in price, that is a major hurdle for an industry that relies heavily on quality grass.

“Feed prices have also risen dramatically which is another concerning issue and coupled with the alarming rise in the cost of electricity, for many farmers this means thousands of pounds of extra input costs each month. it is very easy to see why farmers in the dairy sector are deeply concerned.”

He continued: “What is also very evident is the fact that dairy markets are improving all the time and have been consistently for some time, yet despite repeated calls for a reflection of this improvement in what farmers receive for their efforts, processors fail to step up to the mark.”

He said: “Whilst processors might argue the same in terms of rising costs for their operations, it cannot be fair that to cushion this rise, the dairy farmer takes the full hit. Again this type of strategy by processors only heaps yet more pressure on the dairy sector.”

Mr Irwin concluded: “I firmly believe that processors have much more room for manoeuvre in terms of pricing and they must also quickly realise that producers can’t sustain increase on increase of input costs indefinitely. The pressure on our dairy sector is already significant and there simply has to be a recognition of this and processors must ensure that dairy farmers are fairly rewarded for their produce.”