Jim Shannon, MP for Strangford, speaking on a debate on the Dairy Industry last week at Westminster highlighted the difference between the situation in Northern Ireland with that of the rest of the UK.
He said: “In Northern Ireland, there are 3,425 dairy farms, almost 280,000 dairy cows, and 2,318 people involved in the dairy industry. Clearly, dairy is an important farming sector for us. Some 85% of our milk is exported and the importance of our diary industry cannot be understated with some 75% of primary schools in Northern Ireland receiving milk through the EU milk scheme.
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Jim Shannon Comments On Westminster Debate On Dairy Industry[/caption]
“The difference between the prices received by dairy farmers on the UK mainland and those in Northern Ireland is where our problem is. The decrease in prices is due to a combination of matters, including expected market demand and the Russian embargo.
“In the past few years, Northern Ireland farmers, as with farmers on the mainland, have invested heavily in pedigree stock and new dairy cows. They have also invested in the slurry lagoon systems they have to have in place. Those are expensive, and the repayments on them are very long term. That is all because of EU bureaucracy.
“In Northern Ireland, the Ulster Farmers Union milk price indicator, which was launched in May, is the only barometer of local prices available to local farmers. Given the exceptionally volatile market situation, there are noticeable price differences between Great Britain and Northern Ireland. In September, the difference was 5.36p per litre. When commodity prices are good, the gap tends to be narrower; and it is wider when they are under pressure, as they currently are.
“As things stand, farmers in Northern Ireland are likely to lose 5p per litre just in November. Although many are hopeful that prices have bottomed out, there are fresh concerns about the direction of cheese prices.
“Of course, not having the correct price for dairy products has an impact on other producers down the line and on the agri-food industry overall. At the moment, the biggest concern for the Ulster Farmers Union is the pressure that this market volatility will put on farm cash flows so this is something we need to get resolved,” explained Mr Shannon.
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