Mr Irwin said he had been approached in recent days by several dairy farmers who were concerned that processors should recognize the financial pressures facing the sector, given the realities of rising commodity and fuel prices.
Mr Irwin said: “This is a problem that is of growing concern in the dairy sector, especially because the industry is facing a significant increase in production costs. Taking into account the fact that in recent months the prices for energy and fuel have risen sharply, then it is clear that the profitability of dairy farmers is rapidly declining, which is absolutely unstable.
He added: “One big concern is the cost of fertilizers, which has actually tripled recently, which is a major hurdle for an industry that is heavily dependent on quality grass.
“Feed prices have also risen sharply, which is another worrying issue and coupled with the alarming rise in electricity costs, for many farmers this means thousands of pounds of extra costs per month. it is very easy to understand why farmers in the dairy sector are deeply concerned. ”
He continued: “It is very clear that dairy markets are constantly improving and have been consistent for some time, but despite repeated calls to reflect this improvement in what farmers are getting for their efforts, processors are not taking a step towards estimates.
He said: “While processors may argue the same in terms of rising costs for their operations, it may not be fair to mitigate that growth, the farmer is taking a full blow. Again, such a strategy of processors only increases the pressure on the dairy sector.
Mr Irwin concluded: “I firmly believe that recyclers have much more room for maneuver in terms of pricing, and they also need to quickly realize that manufacturers cannot continue to increase the cost of entry indefinitely. The pressure on our dairy sector is already significant, and it just needs to be recognized, and processors need to ensure that dairy farmers get a fair reward for their produce. ”
https://www.farminglife.com/country-and-farming/processors-must-step-up-to-the-mark-irwin-3575300 Processors need to approach the mark – Irwin