NI dairy farmers ‘squeezed to breaking point’ warns Kyle ahead of RUAS Winter Fair

TUV agriculture spokesperson and Causeway Councillor Allister Kyle

Northern Ireland’s dairy sector is facing what has been described as one of its most severe financial crises in years, with farm-gate milk prices plunging more than 12p per litre since autumn.

As the annual RUAS Winter Fair approaches, industry fears are mounting that many family farms are now on the brink of financial collapse.

The warning comes from TUV agriculture spokesperson and Causeway Councillor Allister Kyle, who says the issue is certain to dominate discussions when farmers gather at the landmark event next week.

“Next week sees the annual RUAS Winter Fair — a highlight of the agricultural calendar and a chance for dairy farmers to catch up with neighbours and friends they may not have seen since this time last year,” he said. “But amid the new machinery, innovations, and prize-winning stock, one issue is certain to dominate every conversation: the milk price.”

Milk prices plunge while costs remain high

Councillor Kyle set out the stark reality facing producers, noting that milk prices have plummeted from 44.56p per litre last autumn to as low as 32.3p per litre today.

“Dairy farmers in Northern Ireland are facing one of the toughest financial squeezes in recent memory,” he said. “Only last autumn, milk prices sat around 44.56p per litre, offering a degree of stability after years of volatility.

“Today, with quotes tumbling to as low as 32.3p per litre, many producers are asking how much longer they can hold on. A drop of over 12p per litre in just a matter of months has an immediate and brutal impact on family farms.”

The downturn is being felt even more sharply because the costs of producing milk remain at historically high levels.

“What makes the situation even harder to accept is that production costs have not eased. Feed, fertiliser, fuel, energy, and veterinary bills remain stubbornly high,” he said.

“For many farms, the cost of producing a litre of milk is now higher than the price they receive for it. Farmers are effectively paying out of their own pockets to keep producing food for the nation. That is not just unsustainable — it is fundamentally unfair.”

Farmers question fairness as processors post strong profits

Frustration has deepened following Dale Farm’s announcement of a record annual profit, which the co-operative attributed in part to stronger market returns.

“Adding to the frustration is the recent announcement from Dale Farm of a record annual profit, boosted in part by higher market returns,” Councillor Kyle said.

“While the co-op has highlighted the benefits of scale and investment, the contrast between strong processor profits and falling farm-gate prices is difficult for farmers to swallow. The people at the heart of dairy production — families milking cows 365 days a year, in all weather — feel they are being left behind while others in the supply chain prosper.”

Rural stability under threat

According to Kyle, farmers are now making difficult decisions that could have long-term consequences for Northern Ireland’s rural economy.

“The consequences are stark. Some farmers are cutting herd sizes. Others are postponing vital investment in buildings, slurry storage, or animal health,” he said.

“A worrying number are contemplating leaving dairying altogether — a decision that would hollow out rural communities and weaken the long-term resilience of our local food system. Once a dairy farm closes, it rarely reopens.”

He warned that Northern Ireland’s reputation for world-class dairy products is now at stake.

“Northern Ireland prides itself on producing world-class dairy products, but that reputation depends entirely on the survival of the farmers who produce them,” he said. “As milk prices fall and input costs rise, the gap between profitability and survival widens by the week.”

Call for action

Kyle urged policymakers, processors, and retailers to recognise the growing imbalance within the supply chain and take steps to protect the future of the dairy industry.

“Without a fairer, more stable system — one that protects farmers as well as processors and retailers — we risk losing not just individual businesses but a cornerstone of NI’s rural identity,” he said.

“It is time for policy-makers, processors, and retailers alike to acknowledge the imbalance and act decisively. Our dairy farmers cannot be expected to carry the burden alone.”