Processors Urged to be Positive in Milk Auction

UFU President Graham Furey said a comprehensive range of support measures proposed by EU Agriculture Commissioner Mariann Fischer Boel; the strength of the Euro versus sterling; and stable retail prices for dairy products, should mean dairy processors are in a much better position to pay higher prices at the January milk auction on Thursday.

Graham Furey said: "After several months when the dairy market was in free fall and auction prices were reflecting this, we are now in a much more positive position. The EU Commission has proposed a very comprehensive range of measures to boost the sector and Mariann Fischer Boel has specifically acknowledged the very difficult situation facing Northern Ireland dairy farmers".

"Export refunds are to be re-introduced, an enhanced intervention package has been agreed and private storage aid for butter has already been introduced earlier than normal.

"The currency situation is also very favourable at the moment and retail products produced locally are going in to a market which is much more stable than global commodity markets.

"We are urging processors to ensure that prices paid at Thursday’s milk auction reflect what has happened in recent days. It is crucial for dairy farmers that there is a significant improvement in auction prices".

The UFU has now written to DEFRA, urging the UK delegation at this weeks EU Commission Dairy Management Committee to support the Commissions proposals for the re-introduction of export refunds.

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