The Ulster Farmers’ Union (UFU) is calling on retailers to pay dairy farmers a fair share for milk as prices drop below the cost of production.

Farmgate milk prices are down 40% in Northern Ireland compared with this time last year, according to the union.

Industry figures show the retail price of two litres of milk averaged £1.45 in 2022, and £1.65 in 2023, yet the amount paid to farmers for two litres fell from £0.97 to £0.57.

See also: Processors work to mitigate losses from Lloyd Fraser fallout

UFU Dairy chairman Kenny Hawkes said nearly 20p/litre has been taken from milk prices in NI and things are not getting any better.

Mr Hawkes said: “It’s simply not sustainable, especially when input prices remain higher than average.

“We’ve been inundated with calls from members who are extremely anxious about farmgate prices and where things are going to end up. It’s utterly disheartening to once again have to call out the failing dynamics within our food supply system.

“Our food producers are getting shafted while others in the dairy chain are clearly making money. If this continues, dairy farmers will be put out of business, which will have serious implications for the agri-food industry and our consumers,” he added.

NI farmgate milk prices averaged 31.05p/litre in July, according to Daera figures, notably below the GB average of 37.19p/litre during the same month.

“We need our fair share of the bottle. It’s the only way to sustain our NI dairy industry,” Mr Hawkes concluded.