THERE are fears the cost of milk production could outweigh farm gate prices in several European countries "for a prolonged period of time".
The Ulster Farmers' Union (UFU) dairy committee chairman Jonathan Moore attended meetings in Brussels between interested parties and the European Commission on the matter.
During the sessions, concerns emerged that "many key decision makers in the European Commission are failing to grasp the extent of the problems facing dairy farmers throughout Europe".
Mr Moore said there were "huge gaps" between the highest and lowest farmgate prices in the EU ranging from 57c per litre in one country to 22.2c per litre in the Baltic region.
And he said the north was suffering disproportionately to the rest of the UK.
"Adding to this, there are also gaps in the milk price within individual member states, as illustrated in the UK, with the GB average price falling by 31 per cent over the last 12 months, compared to 45 per cent here in Northern Ireland," he said.
"There is however positivity in the market in that the demand for dairy products remains in place, but rather it is the high levels of milk production that are holding back the recovery in milk prices."
He said the UFU had been "frustrated at the lack of action taken by the European Commission" since farmgate prices started to fall a year ago.
"Back in March when Commissioner Hogan visited Northern Ireland he was asked specifically about the dairy situation at an EU level and at that point he refused to accept that the price being offered to farmers had dropped to 22-24ppl. Since then, the DARD farm-gate price for March has been recorded as 22.54ppl which is putting substantial pressures on local on-farm cash flows," he said.
“With the price being paid for milk at such a low level we are strongly urging the commissioner to take action and address the problems facing the dairy sector before it’s too late. Our sentiments are reflected by COPA-COGECA who have called on the Commission to take action and to give consideration to proposals such as a Margin Protection Programme, the use of Futures Markets and fixed price contracts.
"There is also an immediate need for the Commissioner to review the Intervention price, something we have called for repeatedly. If product levels in EU stores do not move before the end of the summer there is a real danger that Intervention could be triggered and it is crucial that it is at an adequate level.”