Sustainable food requires sustainable commodity prices says UFU
The Ulster Farmers’ Union (UFU) has hit out saying as market prices continue to fall at an alarming rate, there are continuing high costs of production.
The UFU says that members are losing confidence in the future of farming in Northern Ireland (NI).
At the end of July 2023, food price inflation on the supermarket shelves stood at 12.7%, which had showed a continuing decrease in the past five months. Milk prices have gone down, but eggs and oven chips have risen presenting a complex picture.
Commenting, UFU president David Brown said: “My phone has not cooled over the last number of weeks with dairy, beef and sheep farmers across NI in desperation after the latest drop in prices, with no justification nor reasoning.
“The relentless pressure on prices that processors have exerted over the last number of weeks is unacceptable and must stop.
“What we have is a case of follow-the-leader. Once one processor drops the price, the others follow suit.
“We are fully aware that dairy commodity prices have weakened… but dairy companies put product into different markets which would mean differing returns.
“However, what we are seeing is a reducing differential between the highest and lowest paying processors. The rapid reduction in milk prices since late 2022 has outpaced any fall in input prices.
“Likewise, beef prices have fallen significantly by over £120 a head and lamb has dropped by over £30 a head.
“This means that the break-even in terms of cost of production is widening and everyday our farmers are losing.
“We can’t have processors undermining farmers’ confidence.
“How can farmers be expected to produce high quality food to world leading standards and receive less than it costs to produce as a return? It is simply neither viable nor sustainable.
“The wettest July on record has been headline news… but what is not being highlighted is that due to the unseasonably wet ground conditions, livestock are having to be housed much earlier than anticipated when they should be outside grazing.
“Livestock are having to be fed bought-in feed or in some cases, opening the first cut of silage adding additional cost and pressure for farmers, whilst feed and fertiliser prices remain at record levels.
“Arable and horticulture growers have also been hit hard by the weather as they continue to try and harvest their crops. These falls in prices could not have come at a worse time.
“I encourage members to contact their processors and board members and ask why the prices are falling and to pay the best price they can rather than leading any race to the bottom.
“Processors and board members must now listen to the concern of their suppliers.”
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