Business

Dale Farm to pay farmers more for milk

Dale Farm is to pay producers more for milk
Dale Farm is to pay producers more for milk Dale Farm is to pay producers more for milk

NORTHERN Ireland's largest dairy processor has announced a more than 10 per cent increase in the base price of milk.

Dale Farm said it would add 2.5 pence onto what it paid for each litre of milk from farmers.

The co-operative, which made the announcement at its annual general meeting on Thursday, said it brought the base price per litre to 26.17p when a 2p winter bonus was included.

The increase follows growing calls from dairy farmers for processors to pass an increased global price for milk onto producers.

Dale Farm group chief executive Nick Whelan said the new price represented a "significant lift".

"We have said consistently that the business would give back once the market delivered, and we have kept this promise," he said.

"This increase will hopefully reaffirm our members' confidence and pride in Dale Farm, after two years of falling global prices.

Speaking following the meeting, Mr Whelan said: "We have a strong customer base that recognises the value of Dale Farm post Brexit, and our members felt reassured by this.

"They asked constructive and progressive questions today of the board and me, and accepted the decision to open the milk pool to new suppliers.

"Dale Farm is a business to be proud of. It is well positioned to succeed in a demanding market place thanks to an excellent operational footprint and an extensive portfolio of award winning products, with a strategy focused on continuous innovation."

The price increase was welcomed by the Ulster Farmers' Union (UFU).

It described the move as a "lead that others in the industry should follow".

The body, among others, had been piling pressure on Dale Farm and other processors in recent weeks.

Union president Barclay Bell said: "This is a timely and welcome move by Dale Farm, and one that will certainly be welcomed by the farmers that own the business.

"Most of those farmers are UFU members, and through our dairy committee it was farmers that pressed us to take a tough line on prices.,

“Dale Farm has done the right thing. It is unfortunate that relations became strained when we were pressing for this, but the outcome was worth pursuing.

"My message to other processors is that an example has been set, and we will not shy away from being critical if others do not follow this lead. We will continue to monitor markets and we will challenge processors again if we believe they are not being fair to their farmer suppliers."