Northern Ireland Farm Groups including Northern Ireland Agricultural Producers Association (NIAPA) and Farmers For Action (FFA) coming together on the issue of legislation on farm gate prices, released the following statement in August:
NI farm gate prices are by far the biggest issue for Northern Ireland farmers and the Northern Ireland economy, only followed by Brexit and the far from solved border issue for Ireland north and south.
Food Corporates and Co-op food processors face relentless farm gate price pressure actions continue to make the case for farm gate price legislation . . . It’s time for Stormont’s politicians to get back to work and prove they value Northern Ireland’s farming families and the top quality home grown food they produce, including their link to Northern Ireland’s prosperity. They must get back into Stormont and start processing the farm gate price legislation bill proposed by NI Farm Groups.
Every day Stormont doesn’t sit to act on this vital issue is costing Northern Ireland approximately £1million per day; this is made up of £280million inflation linked per annum on rural welfare support and jobs, according to the Gosling Report.
Farmers For Action have now issued a message to dairy farmers considering term contracts for a large or small portion of their milk, summarised here:
William Taylor, FFA NI co-ordinator, states that “Across the main news we now find that the large food corporates are seeking to Brexit-proof food prices – roughly translated Brexit-proof their profits – and hold off their competition. How can it be right for dairy farmers or any other farmers to sign contracts that are grossly under the cost of production and not inflation linked, merely to facilitate food corporate profit taking.” He continues:
“Co-ops are going out and taking the business from the large food retailers and food wholesalers on mainly the lowest price basis to eliminate competition, then come back to the farmer for their profit . . . This has to be wrong, in that it will never return sufficient money to the farmer members of any co-op.
“The job of a CEO of a dairy co-op is to employ good salesmen and implement a policy of selling a quality product time after time, build up a reputation for dependability and above all know when the market is saturated and when it is not, as is currently the case, and use this to advantage – always have a selling edge and always look for new outlets . . .
“Above all, in order to earn any credibility from their farmer member-owners, good co-ops should be able to sell milk above the price of bottled water and never be a bargain basement seller”.
Points to remember:
- any contracts being currently touted in Northern Ireland must be checked legally; sign nothing without good legal advice.
- remember, the true cost of production ‘without profit’ repeatedly coming back from Europe’s most efficient producers via European Milk Board is just over 40p/l.
William Taylor concluded, “Consider carefully before you sign your family into possible debt for the sake of food corporate and co-op profits with non-inflation linked under-the-cost-of-production contracts.
Legislation on farmgate prices across the staples is ultimately the answer and we are making progress!”
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The full text of both messages will be emailed to anyone who would like to learn more – just ask using the comments mechanism.