DAIRY farmers have blasted a price offer from a leading processor has an "insult".
It follows the latest milk supply contracts by Lakeland Diaries which have prompted lobby group Farmers For Action (FFA) to issue a "beware" message to members.
Although it didn't reveal the precise details of the deal offered to farmers, the organisation issued a statement saying, "the steering committee of Farmers For Action wish to make clear to dairy farmers and all farmers that under no circumstances should they sign under the cost of production contracts".
However, it is understood Lakeland has offered fixed contracts to pay farmers 20.75p per litre between April and September and 21.75p per litre between October and March.
Dairy farmers are currently paid around 16-18p per litre.
It is just the latest call from the group over what they deem low milk prices which last year saw farmers across Ireland, Britain and beyond launch protests.
"Currently according to European Milk Board figures this (cost of production) is around 45c – 50c/l," said a Farmers For Action spokesman.
"The current move by Lakeland would suggest that they see a shortage of supply forward and are merely concerned about their milk supply being secured at the lowest possible price, meanwhile, FFA are concerned about the financial hardship that many farmers are currently enduring.
"Therefore the current offer by Lakeland is an insult especially when you consider that Nestle in Omagh paid 32.5p/l in 1987."
Lakeland Dairies did not respond to a request for comment.
The crossborder co-operative acquired Fane Valley’s dairy business earlier this month in a move that will allow it to process up to 1.1 billion litres of milk a year.
It also posted a 10 per cent rise in pre-tax profits last year to €12.8 million (£9.9m) despite the downturn in global markets.
Revenues for 2015 however were down 6 per cent to €588.5m (£455.5m) due to what it said was continuing pressure on returns.