The continued decline in milk prices has led the Ulster Farmers Union (UFU) to demand a debate on mandatory dairy contracts.
A call from UFU came after a number of milk processors “unjustifiably” reduced May base prices. The UFU said that there is "no excuse" for this price reduction, because the market is signaling a price increase.
It was noted that since the beginning of the year, when the dairy market remains strong, farmers are “disappointed” in that processors continue to “refuse” to share profits with primary producers.
“It is precisely this kind of dishonesty on the part of dairy factories that emphasizes why the industry needs honest and frank debates about mandatory dairy contracts. If there were mandatory contracts, this unreasonable reduction in the base price could not have occurred, ”said Victor Chestnutt, UFU Deputy President.
He added: “Primary producers in Northern Ireland demand transparency when it comes to milk prices. Now is the time for a healthy discussion. It’s clear that we need more transparency in the supply chain to stop the unexplained and unreasonable drop in prices. ”
At the same time, the Northern Ireland Department of Agriculture (DEFRA) has confirmed that it will soon begin a nationwide consultation on mandatory dairy contracts.
