News

3rd September 09
9/3/2009

Ulster Unionist MLA, Tom Elliott has spoke of his "delight and relief" as milk powder prices soared by 25% to reach their highest price for the year.

Elliott welcomes rise in milk prices

Ulster Unionist MLA, Tom Elliott has spoke of his "delight and relief" as milk powder prices soared by 25% to reach their highest price for the year. Fonterra Cooperative Group Ltd., the world’s largest dairy exporter based in Auckland, New Zealand, stated that they had to use “every available drop” of milk to meet orders following a recovery in demand.

 

In a statement, Mr Elliott said: “This rise in the price of milk is certainly very welcome news. Milk farmers here in Northern Ireland and in other parts of the United Kingdom have really suffered in recent times following a large fall in demand for milk based products globally. However, the return of public demand, coupled with reduced production in the U.S. and tight supplies in Australia and New Zealand, have all contributed to a much larger growth in prices than any of us would have dared to predict. While we need to always be conscious that the market remains volatile, it is good to see prices going in the right direction after they stayed so low for so long.”

 

In July this year, milk powder prices had reached a five year low as consumer spending slowed faster than producers could reduce output. It was at times such, that subsidies from Europe were vital in continuing to help local milk farmers survive the market downturn. With prices finally looking up, Mr Elliott said he hoped that the day would again return when milk farmers would no longer be so dependant upon subsidies from Europe.

 

The Fermanagh and South Tyrone representative went on to say: “The importance of the subsidies that have helped keep milk farmers afloat during the economic downturn cannot be underestimated. Indeed, it is something that my colleague Jim Nicholson MEP worked hard to promote as he made the case for local farmers. However, I, and no doubt many other members of the agricultural community, would love to see the return of market stability to such a point as subsidies become unnecessary. I’m not saying that the upturn in prices means that we should drop subsidies immediately as that would be ridiculous. However, I believe it should certainly be our long term aim and we need to do what we can to sure up the market when times are looking up.”

 

“I hope local milk farmers will take hope from this months prices. There is a long road ahead before we leave our economic troubles behind, but things are moving in the right direction and hopefully some confidence will now return amongst members of the agricultural community.”





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