Dairy farmers struggling with rising costs

Councillor Mark Glasgow said farmers are coming under mounting financial pressure due to rapid increase in the price of meal, fertiliser, energy costs and fuel costs.

“These costs have been rising throughout the year and these costs continue to rise,” he said in a statement this week.

“It has been reported that the break-even milk price has increased 3.5ppl in the last 15 months and there is a big worry that it won’t stop there,” he said.

“The recent increase in energy costs to the farm business has had a big impact on overhead costs and this in turn leads to a domino-effect that will then increase meal, fertiliser and fuel costs.

“I myself come from a dairy farm and I have seen first hand these increased costs and fully understand the problems associated with an out of balance system when it comes to the price farmers receive for their milk compared to what it really costs to produce milk.”

Councillor Glasgow said the reality is it will become impossible to keep up with rising costs and “with the current base milk prices not meeting the increase, it just doesn’t pay the bills.”

The local representative added: “Farmers continued call for a higher local base milk price is justified as the cost for producing milk has increased.

“Farmers need a realistic financially viable price for their milk because if things continue the way they are going a lot of dairy farmers could have to quit altogether due to financial pressures.”

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