The Ulster Farmers’ Union (UFU) has claimed that Dairy UK (Northern Ireland branch) has attempted to block future engagement with the union after it criticised milk processors for failing to pass on better returns from milk markets to producers. UFU called the decision “Bizarre” in a statement on Wednesday.

UFU deputy president, Ivor Ferguson said, “Farmers are right to demand that processors dig deeper to give them the full benefit of the fall in the value of sterling and improving global markets.  If they cannot do so, they need to explain to their members why this is the case and [let them know] when they can expect to see price increases.  For the organisation that represents processors to respond to criticism by refusing to engage with the body that represents their farmer suppliers is, quite frankly, childish posturing”

Dairy UK (NI) said UFU’s criticism was “unhelpful and unjustified.”

But UFU’s Ivor Ferguson went on, “I have to tell them we are not there to be helpful to processors.  We are there to help farmers, and their action is evidence that processors do not understand the financial pain and angry mood of the farmers that supply the milk that keeps them in business.  If Dairy UK (NI) believes our criticism is unjustified that is a different matter, but in a rational business world people debate their differences. They do not simply walk away.”

The UFU deputy president said Dale Farm had also decided not to engage with the UFU.  “That is their choice, but as a farmer owned cooperative, I hope they are aware that many of their members are also members of the UFU.  These producers have been pushing for us to take a tougher line – and I would urge them to make clear to Dale Farm that blocking engagement with the organisation that represents farmers is the wrong stance for any cooperative,” He said.

Responding to the UFU’s statement on Thursday, Dr. Mike Johnston, director of Dairy UK Northern Ireland said, “We have always enjoyed a very good relationship with the farming unions in Northern Ireland and we meet regularly with them to engage on all industry issues. However, we were disappointed when a meeting scheduled with the UFU was marred in advance with unwarranted criticism of our members and we believed it would be sensible to take stock before scheduling another meeting which we will be happy to attend in due course.”

Dr Johnston said, “As everyone in the industry knows, dairy markets have been recovering steadily compared to the situation nine months ago, as global milk supply has tightened. All dairy companies in Northern Ireland are acutely aware of the financial pressure farmers have endured. Consequently, milk processors have been keen to reflect any improvements in their returns in the milk price they pay to farmers, and this has been reflected in increasing prices to dairy farmers since July of this year.”
 
“However, it needs to be remembered that dairy companies forward sell their production, which means there is always a lag between their average market realisations of their sales contracts and the reported spot price. This is reflected in current market prices being reflected in prices paid to dairy farmers. The expectation is that the ongoing strengthening of market prices should increasingly feed through into processors’ selling contracts enabling them enable dairy processors to keep increasing milk prices, especially over the winter months when dairy farmers have added costs, easing the pressure on all sides of the industry. This has already been communicated to milk suppliers and we will keep engaging with them regularly.”

Nevertheless, farm groups in Northern Ireland (including Fair Price NI, NIAPA, Holstein UK and Farmers for Action) have called a meeting in Cookstown for 14th November, to discuss milk prices and farmers’ share of the higher dairy returns seen this year. Farmers at the meeting will discuss the possibility of a ‘milk strike’. They say that farm gate prices have risen further and faster in other European countries and want answers from the milk buyers.

The UFU deputy president said on Wednesday that the union will not be attending the milk meeting, but he noted that the fact it has been called, and that many producers are considering sending their milk to processors operating in Great Britain, is further evidence of the hurt and anger felt by dairy farmers across Northern Ireland. He said this unrest is justified, adding, “Farmers see dairy commodity prices rising, in some cases to record levels, while milk production is falling, yet our dairy farmers are still receiving a base price below the cost of production.”