The decision by two of the largest milk processors in NI, Dale Farm and Glanbia Cheese, to apply a further cut to base prices for milk supplied in October has drawn an angry reaction from farmers.

Both have applied a further 0.25p/l cut, leaving Dale Farm on a base of 24.25p/l.

Once the co-op’s 0.3p/l loyalty bonus is applied, and the 2p/l winter bonus added in, suppliers of Dale Farm are effectively on an all-in base price of 26.55p/l.

Glanbia Cheese also pays a 2p/l winter bonus on October milk, so with its base price now at 23.75p/l, it is a total price of 25.75p/l. In Britain the company has confirmed that it will pay 27p/ to the end of the year. However, that price is for milk at 4.2% butterfat and 3.4% protein.

Other processors in NI held prices, leaving Lakeland on 24.5p/l, and Glanbia Milk/Fivemiletown on 24.75p/l. In both cases, winter bonuses kick in next month (3p/l for two months and 1.5p/l for four months respectively).

Strathroy Dairies held at 24.5p/l, and with a 1p/l winter bonus paid in October, it is a total price of 25.5p/l. That leaves Aurivo, which held on a base of 24.75p/l. Once the 2p/l winter bonus is added, it is a total price of 26.75p/l.

With the New Zealand Global Dairy Trade (GDT) auction up another 1.7%, mainly on the back of stronger prices for powders driven by Chinese demand, and other commodity price indexes showing positive trends, farmers maintain that the cuts applied in NI are unjust.

“Why take 0.25p/l off? For a company the size of Dale Farm or Glanbia Cheese, if they can’t stand 0.25p/l, then dear help us all,” said one local farmer.

The UFU was also highly critical, commenting that it was “bewildered” by the decision by the two companies to cut prices.

“Local processors have ignored dairy commodity indicators and instead used Brexit as an excuse not to pay the true price for milk, leaving farmers angry and frustrated,” said UFU deputy president Victor Chestnutt.

He also pointed to the widening gap in prices paid by NI companies compared to counterparts in Britain, suggesting that the current difference was “scandalous”.

The most recent data shows that in August 2019 the average price paid in NI was 25.79p/l, compared to 29.36p/l in Britain. For the same month last year, the difference was 1.2p/l.

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