6 December 2000
Milk price rise due – NFU

By FWi staff

A CONTINUING milk shortage means that conditions are ripe for further price rises to farmers, the National Farmers Union has claimed.

Milk production has declined at a rate of more than 7% in recent weeks due to poor-quality forage and the continuing exodus of producers from the industry.

Many producers have received the minimum 2ppl milk price increase predicted by the NFU in September. But they are still only receiving about 18ppl.

This is not enough to cover the increased costs of fuel, compound feeds and fertilisers, according to NFU milk committee chairman Terrig Morgan.

“The increased prices we have seen so far will certainly not put the majority of producers back in profit, let alone allow them to reinvest for the future.

“Producers need a bare minimum of 21ppl to cover costs and, in my view, at least 24ppl to ensure a viable sustainable industry.”

Mr Morgan said that a continuing and accelerating decline in milk production could mean a significant shortage of milk to processors.

“We know that this is already affecting prices on the spot market, where prices of up to 30ppl have been reported, and secondary markets are equally buoyant.

“The market conditions are now ripe and it is about time that producers received the full benefits of them.”