24th June 2008
United Dairy Farmers today (15 May) announced the winners of two important inaugural dairy farmer awards, which focus on farm businesses improvements through environmental or innovation-led initiatives.
The awards, which are sponsored by the Ulster Bank, were presented by Harold Hamilton, Chairman of United Dairy Farmers, at a special ceremony at the Balmoral Show to Kenneth Alcorn from Loughmuck near Omagh and Fred Allen from Randalstown, who won the Environment and Innovation categories respectively.
Both winners each received a cheque for £500, while Kenneth also won a trip to the European Dairy Farmers Congress to be held in Holland in June.
The runner up in the Environment competition was Brian Knipe from Ballymoney, and John McLenagnan from Garvagh was Highly Commended. In the Innovation competition Harold Johnston from Ahoghill was Runner up and Kenneth Alcorn, the Environment Award winner, was also Highly Commended in the Innovation Competition. The runners-up received prizes of £250 each.
“We introduced the Environment Award to recognise the tremendous contribution our farmer members make to enhancing the environment through good farming practice,” explained Harold Hamilton, United’s Chairman.
“The Alcorn family is an excellent example. They run a progressive dairy farm in a beautiful part of the country beside Loughmuck Lake near Omagh. The farm takes a holistic approach to protecting the environment, ensuring proper storage and use of slurry to obtain the maximum fertiliser value from it, putting measures in place to reduce the use of water and energy and recycle waste plastics. Planting additional trees and hedges also encourages wildlife.”
Harold Hamilton went on to say: “Farming is an extremely varied occupation, and farmers use their resourcefulness when it comes to solving everyday problems and improving their farm enterprises. We were delighted by the quality of the entries we received for the Innovation Award, and in Fred Allen found a worthy winner. Big bale silage plays an important role in feeding the dairy herd on the Allen farm and Fred has developed an ingenious loader attachment that lifts 2 big bales at once – halving the amount of time normally taken to move bales with big savings on labour, fuel and time. Runner-up, Harold Johnston, has developed a very effective system for using parlour washings as a footbath for his dairy herd – improving herd health and reusing some of the chemicals bought onto the farm.
“We had a very strong list of entrants for each prize and I want to thank all those who entered the competitions; and also the judges who had a really difficult task in selecting the winners,” said Harold.
“The Ulster Bank is delighted to be associated with these awards and to join with United Dairy Farmers in showing our support for the dairy industry and in particular for the work it is doing in protecting and improving the environment,” said Cormac McKervey, the Bank’s Senior Agricultural Manager, who was also one of the judges in the Innovation Competition.
“I was most impressed by how the farmers we visited had used their ingenuity to solve real farm problems – whether it was in lifting bales of silage, the application of teat dip, making use of rainwater or preventing theft. With limited labour availability, farmers are looking for ways to simplify farm activity and reduce costs, and the judges were certainly impressed by their inventiveness and their commitment to the success of their businesses – which is good for the long term future of the industry,” said Cormac.”
Ends For further press information please contact Dana McCusker / Nicola Adamson at Morrow Communications. Tel: 028 9039 3837 / 0777 333 6249.
Notes for Editors: 1. The competition judges were Environment: John Gilliland, former President of the Ulster Farmers’ Union; Ian McCluggage, Head of Dairy & Pigs Development Branch, Greenmount Campus; Alex McGarel, World Wildlife Fund; and Brian Hunter, United Dairy Farmers
Innovation: Bob Barbour, Northern Ireland Centre for Competitiveness; Cormac McKervey,Ulster Bank; James Walker and Euel Agnew, United Dairy Farmers
2. The Environment Award took account of projects the farmers had undertaken to improve the management or recycling of waste; reduce the use of resources like energy and water; improve water quality and encourage bio-diversity.
3. The Innovation Award was looking for on- farm innovations that either simplified farm management; reduced cost; or improved performance on the farm. The ideas did not have to be sophisticated or expensive and a willingness to share the innovation with others was also a key criterion.
24th June 2008
The average milk price at this month’s United Dairy Farmers’ auction was 26.21 pence per litre, up almost 2 pence on last month’s auction and slightly ahead of the same auction last year.
Commenting on the outcome of the auction, David Dobbin, United’s Group Chief Executive said: “This further price increase will be welcome news for dairy farmers who continue to be under huge pressure from the escalating costs of fertiliser, fuel and feed.
“As expected, auction prices are continuing to strengthen as we leave the Spring supply peak behind and on the back of more favourable domestic and international markets. Markets are firming slightly having got through the European peak without any major surpluses. The expectation of a GB milk shortage this winter and the continuing strong Euro exchange rate are also supporting an increase in the auction milk price. An increase of 1.93 pence per litre keeps our auction price slightly ahead of last June’s level and nearly 8 pence ahead of the depressed levels 2 years ago.”
“With better returns in the last 2 auctions, United members will see their milk price move up in the next few months from the May base price of 21.50 ppl. As milk sold in this week’s auction will be supplied in July, August and September, it will take a several months before the latest auction prices are fully reflected in our members’ milk cheques.”
“With no export refunds at present, most processors have a relatively short order book and can’t see forward beyond two to three months. Without EU management markets are increasingly volatile. Last year’s very strong markets suffered a sharp correction when New Zealand output came fully on stream together with a jump in US output. So looking ahead for this autumn much will depend on what happens later in the summer when New Zealand re-enters the market with its new season production. Another important factor will be how EU supplies respond to the 2.5% quota increase awarded to most member states for 2008/09.”
“However, while we do not know for sure where markets will go, there are continuing grounds for cautious optimism. UK milk supplies continue on a downward trend, with a year-on-year reduction of 2.5% in May. Concern about future GB milk supply levels, and the effect of the strong Euro, has resulted in firm prices for milk and dairy products in GB. This has created market opportunities for local Northern Ireland processors, however milk prices on this side of the Irish Sea will continue to be more closely aligned to international commodity markets, which still absorb a high proportion of our production, especially in the peak supply months.”
In the auction a total of 41 million litres of milk were sold. Of this, 39 million litres were sold on 3-month contracts for delivery in July, August and September at an average price of 26.22 pence per litre. The other 2 million litres were sold on one month contracts for delivery in July at an average price of 25.86 pence. The overall auction average was 26.21 pence per litre, compared to an average of 24.28 pence in last month’s auction and 26.00 pence in April last year.24th June 2008
The average price at this month’s United Dairy Farmers’ milk auction held on Thursday 22 May was 24.28 pence per litre, up 1.6 pence on last month’s auction and 1.25 pence ahead of the same auction last year.
Commenting on the auction, David Dobbin, United’s Group Chief Executive said: “as expected prices at this week’s auction moved up. We have now sold all of United’s peak milk and have started to sell late summer milk. Market returns have also stabilised helped by the late season drought in New Zealand and the stronger Euro. If the current market conditions continue we would expect further improvement at the next auction.”
“Dairy farmers are under huge cost pressure with escalating fertilizer, fuel and feed costs and desperately need to see an improvement in their milk price. Hopefully we are now at the bottom of this year’s pricing cycle and United’s base price for April at 21.5 pence is 5 pence above last year. United members will see improvements in price from June onwards but prices will not climb as far or as fast as last year. We can not accurately forecast beyond August when New Zealand normally re-enters the market and starts to pre sell their spring output.”
“As this week’s auction was for part of our deliveries for June, July and August, United members will not see the benefit of this auction until they receive their milk cheque for June supply.”
“United’s auction prices normally reflect the seasonality of the NI milk supply with prices moving up in the late summer and autumn. While we can not guarantee what will happen, we are cautiously optimistic that the weakness in sterling and the expected tightness in the GB supply situation should provide opportunities for the Northern Ireland industry and help support higher auction prices as we move through into the summer. While prices should climb they are extremely unlikely to go as high as last year.”
“After a cold and sluggish start to the 2008 growing season, this month’s favourable weather has led to a surge in milk supplies across the UK and Ireland. In recent weeks some companies have struggled to handle all of their milk. In GB, reduced processing capacity has meant that Westbury, the major balancing plant, has been generally full in May. As a result the spot milk price in GB has fallen to the return level of skim powder/butter, the same levels as in Northern Ireland. Spot GB prices should strengthen as we move away from the peak.”
In the auction a total of 44 million litres of milk were sold. Of this, 42 million litres were sold on 3-month contracts for delivery in June, July and August at an average price of 24.28 pence per litre. The other 2 million litres were sold on one month contracts for delivery in June, also at an average price of 24.28 pence. The overall auction average was 24.28 pence per litre, compared to an average of 22.65 pence in last month’s auction and 23.03 pence in the auction in April last year.
24th June 2008
The average price at this month’s United Dairy Farmers’ milk auction was 22.65 pence per litre, just marginally ahead of last month’s auction, and 2.4 ppl ahead of last year.
Commenting on the auction held on Thursday (24 April) David Dobbin, the United’s Group Chief Executive said: “This was the last of our peak milk auctions for 2008. Prices were marginally above the March auction and reflecting the much lower commodity returns compared to last year. However we expect the seasonal fall in local milk supplies, together with the ongoing tightness in GB supplies and the strength of the Euro to give an impetus for improvements in auction prices in the months ahead.
“Cost inflation has become a major factor affecting the industry, particularly at farm level where there has been substantial increases in feed, fertiliser and energy costs. We are acutely aware of the need for higher returns to recover these increased costs.
“In our next auction will be selling milk through into August. Prices normally rise as we move away from the spring peak”
“International dairy markets remain weak when compared to the peak levels of last summer, particularly for skimmed milk and whey powders, but in recent weeks there have been some signs of price stability and firming in the market. Increased supplies of product from the US, France and other EU countries are offsetting the effect of recent droughts on the end-of season supplies from New Zealand.“The weak markets, combined with the strength of the Euro, are having a negative impact on the industry in the Republic of Ireland, though this has not yet been fully felt because of currency cover. The Irish Dairy Board has cut its butter price by €300 per tonne this month. The SMP price has also been cut by €100 per tonne and is now 25% lower than it was a year ago.
“In spite of the improvements in farmgate prices in GB, milk supplies there continue to fall, with a reduction of well over 300 million litres (about 2.5%) in 2007/08. That reduction in supply, together with the weakness of Sterling relative to the Euro, is helping to maintain retail prices for liquid milk and cheese in GB, and is creating opportunities for the Northern Ireland industry.
In the auction a total of 52 million litres of milk were sold. Of this, 48 million litres were sold on 3-month contracts for delivery in May, June and July at an average price of 22.72 pence per litre. The other 4 million litres were sold on one month contracts for delivery in May at an average price of 21.76 pence. The overall auction average was 22.65 pence per litre, compared to an average of 22.61 pence in last month’s auction and 20.24 pence in the auction in April last year
24th June 2008
This month’s United Dairy Farmers’ milk auction was held on Thursday (20 February) and resulted in a price of 22.61 pence per litre, which although 5.3 pence ahead of the same auction last year, was around 0.4 pence behind last month’s auction.
Commenting on the auction David Dobbin, the United’s Group Chief Executive said: “while this auction result was over 5 pence per litre ahead of last year, a year on year increase of 30%, the dip against last month reflects the recent weakening of international and EU dairy markets as a result of increasing milk supply. The EU Farm Ministers’ decision to increase EU milk quotas by a further 2% is unwelcome and can only make the situation worse. The decision to increase quota comes just after the Irish Dairy Board’s decision to slash their on account price for skimmed powder by 250 Euros per tonne. However we are pleased that the auction remained over 5 pence ahead of last year’s level, an increase that is absolutely essential for our farmers and one which will be totally swallowed up by higher bills for feed, fertiliser, fuel and other inputs.”
“This was our largest milk auction of the year,” said David. “We sold 54 million litres for delivery in the peak supply months of April, May and June. We now have about two thirds of our May milk sold at prices between 22.5 and 23 pence per litre, giving reasonable certainty that the price we pay farmers for their spring milk will be above 20p for the first time in 10 years.
“The EU allocation of 2% extra quota for 2008/09 comes on top of an increase of 0.5% previously agreed for the UK and 10 other member states as part of the 2003 CAP reform agreement. The total increase for the EU is 3.9 billion litres – equivalent to double the annual milk output of Northern Ireland.”
“Such a large increase in one year will definitely impact on the market. Farmers need look no further than GB where milk supply has been falling and farm milk prices have remained firm. We do not want to see a rising supply in a weakening market. Milk supply is surging in the US, France, Ireland and Germany. Thankfully dry weather has curtailed the end of season supply in New Zealand and this has helped counterbalance increasing supply elsewhere. The weakness in sterling exchange against the Euro is also helping offset falling commodity prices.”
In the auction a total of 57 million litres of milk were sold. Of this, 54 million litres were sold on 3-month contracts for delivery in April, May and June at an average price of 22.60 pence per litre. The other 3 million litres were sold on one month contracts for delivery in April an average price of 22.83 pence. The overall auction average was 22.61 pence per litre, compared to an average of 22.99 pence in last month’s auction and 17.30 pence in the auction in March last year.