Dairy Farmers Face Declining Gate Prices Amid High Retail Costs

Dairy farmers in Fermanagh are facing challenging times as the gate price for milk has dropped below 30p per litre. Lakeland Dairies, a major milk collector in the region, recently announced that their price for November would be less than 30p per litre. In contrast, the retail price of milk in stores ranges from £1 to £1.50 per litre, with processed dairy products like butter also maintaining high prices.

A local farmer expressed concern, noting that while the current gate price situation is not the worst he has seen, the combination of low prices and rising costs could drive some out of the industry. He mentioned, "Dairy farming is not sustainable for families at the minute."

Following a meeting of the four UK farming unions, including the Ulster Farmers’ Union (UFU), a joint open letter was issued to milk processors. The letter emphasizes the need for transparency and communication between farmers and processors during this challenging period. The unions remind milk buyers of their obligation to comply with fair dealing legislation and maintain open communication channels.

UFU dairy chairman Cyril Orr highlighted the market uncertainty and pressure on farm gate prices, stating, "It is more vital than ever that farmers can place trust in their processors." He called for greater openness and collaboration within milk pools to ensure a sustainable future for dairy farmers.