Dairy prices are falling short, with positive gains from a favourable exchange rate not being shared with farmers. That’s the view of Ulster Farmers’ Union (UFU) dairy chair William Irvin.

“A weak pound means our exports are more competitive yet the gains that delivers are not being shared with farmers,” he said.

Local dairy prices are still below what the market can return and the exchange rate should be boosting prices by between 2.5p and 3p a litre, the dairy chair added.

A recent report highlighted that since the drop in the value of sterling, there is around £200m unaccounted for in the agricultural supply chain.

“We raised this with processors and were told forward selling was why farmers weren’t seeing an immediate boost in prices. This was months ago.

“These contracts will have run their course now. Processors must explain why the gains made from the exchange rate have not been shared with farmers,” William said.

February milk price

Co-ops announced the milk price for February this week and for the first time in seven months there has been no increase.

With increasing EU milk production, processors Dale Farm, Lakeland, Glanbia Milk and Fivemiletown all held their prices.

Meanwhile in the Republic, with the exception of the Carbery Group, all other co-ops (Lakeland, Glanbia, Kerry group and Dairygold) kept the January milk price unchanged for February.

The Carbery group increased by 1.5c/l and it is up to the four co-ops, Bandon, Barryroe, Drinagh and Lisavaird, if they pass this on to suppliers.

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