NI farmers urged to cut milk production

With milk prices on a spiralling descent, dairy farmers in Northern Ireland have been urged to cut their supply in order to regulate the market and let it recover.

Since milk quotas were abolished in the European Union last year, some farmers have increased their supply in order to compensate for falling milk prices.

However, there is too much milk on the market and supply is smothering demand, making prices crash even further.

Fair Price Farming NI warned local dairy farmers that if supply does not fall soon, more farmers will go out of business.

Milk prices are around 16 -18p/litre, and that price, say Fair Price Farming NI, is about to fall to 12p/litre. If it does, it will signal the end for many of the Province’s farm businesses.

Charlie Weir is the chairman of Fair Price Farming NI and also milks a large dairy herd in Waringstown. He said voluntary reduction is the only way to save the industry, and farmers wouldn’t need to cut supply by much to make a difference.

Mr Weir said: “We were told last week in Brussels that one local processor is going to cut its price to 12p per litre for June milk. That is certainly not sustainable to any farm business and will spell the end for some farmers.

“We see the only way to curb this devastating price fall is to cut production.

“I can understand farmers who increased their production to keep their cash flow going when prices collapsed.

“However, we are now at a stage where the glut of milk is driving prices down even further and it cannot last.

“It wouldn’t take a huge amount of reduction to start making a difference, but we need the cuts now.

“Those farmers that are already struggling will not be able to cope for much longer if prices sink to 12p.

“The powers that be in Europe will not agree to mandatory reduction, so it’s time farmers here took control of their own destiny and reduced the supply so that the market has time to even out somewhat.

“There was a vote in Europe for voluntary reduction which was supported by 23 member states. Only one voted against it, and there were four abstentions.

“If voluntary reduction does not happen soon, it’s curtains for some of us,” said Mr Weir.

Northern Ireland dairy farmers have been urged to reduce production.