“We must work together to drive up profitability for our dairy farmers at this tough time.”
That was the key message from Agriculture Minister, Michelle O’Neill, today when she met with the Ulster Farmers’ Union (UFU) and six local banks to discuss the cash flow challenges facing the dairy sector.
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Michelle O’Neill, DARD Minister, met with the banks to discuss the dairy industry cash flow predicament.[/caption]
Speaking after the meeting in Belfast, the Minister said: “The dairy sector makes an important contribution to our economy and those of us at today’s meeting are concerned about the recent sharp fall in milk prices and its impact on the industry. Due to this decrease and the need to pay their tax bills soon, a number of dairy farmers are worried about their cash flow and their ability to repay borrowings over the winter. We agreed that each of us hold a key role in helping our farmers manage their businesses at this difficult time.”
During the meeting, the banks offered reassurance that they remain determined to support the dairy industry through this challenging period. They also made a commitment to early and pro-active engagement with their customers individually to ensure they received the appropriate assistance. And they said they remained committed to the long-term development of the industry.
Describing the meeting as “positive” the Minister added: “I want to thank the representative of the banks and the UFU for a very useful and meaningful exchange of ideas and views.
“I was heartened by the banks’ willingness to be flexible and their commitment to supporting the industry by proactively engaging with farmers. However, I would encourage farmers to plan carefully looking at herd performance, costs of production and financial repayments. If difficulties arise, please seek advice as early as possible.”
The Minister pointed out that CAFRE Dairy Development Advisers have been disseminating relevant information to dairy farmers on managing cash flow and that briefing has also been provided to the UFU who have been encouraging good financial discipline on farms.
The Minister said that she was optimistic about long term prospects, adding: “Whilst farmers are facing a difficult time at present, I believe that the prospects for the dairy sector are good in the longer term. This was also echoed by the banks. The world’s population is increasing and there is a growing demand for dairy products. It was reassuring to hear that the banks are keen to play their part in the long term vision for the industry.”
Today’s meeting is one of a number of measures the Minister is undertaking to tackle current issues impacting on the dairy sector.
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