The Ulster Farmers’ Union and Holstein NI have written to NI Secretary of State, Julian Smith, to outline a number of significant issues that are putting dairy businesses under significant pressure.
In a joint statement, UFU president, Ivor Ferguson, and Holstein NI chairman, Charlie Weir, said: “Many dairy farmers are currently producing milk below cost. Those producers who have invested in the future of the dairy industry are exposed financially. An immediate lift in prices is required, as many producers cannot survive on reduced returns, even in the short term.
“A no-deal Brexit remains a very real possibility and will have stark consequences for the industry. If there is a no-deal, we could see milk uncollected on farms; interrupted trade with the requirement of Export Health Certificates; price shock to farmgate milk prices; and input availability such as feed, and veterinary products.
“Also, the impact of the intended UK no-deal tariff policy will have far-reaching and long-term consequences. Even if used temporarily. Northern Ireland exports over 80% of its dairy produce, any barriers to this trade will have major implications for our industry. Tariff levels and TRQs must be set at an appropriate level, otherwise it will cause irreparable damage to the dairy industry.
“In the event of a no-deal Brexit, the government must ensure it stabilises producer returns and prioritise securing a future EU trade deal.”
The two organisations added that NI’s dairy sector had a gross turnover of £1.08 billion in 2017, Northern Ireland being the second largest milk producing region in the UK.
“Dairying is a crucial part of Northern Ireland’s economy and given 750 million litres of milk is sent to the Republic of Ireland annually, the importance of securing a Brexit deal cannot be overstated,” they said. “The UK government must be prepared to step in and support the dairy industry in the event of a no-deal Brexit.”