Farmers in Northern Ireland wary of dairy sustainability deals

The Ulster Farmers’ Union (UFU) is encouraging farmers in Northern Ireland to question any sustainability commitments before signing agreements with milk processors.

It is warning farmers to make sure they are fully aware of future commitments due to a lack of transparency.

See also: NI farmers told to share carbon data as part of quality assurance scheme

UFU deputy president William Irvine said: “Sustainability payments will be introduced in 2024 and dairy companies have started to send communication to their farmers. 

“Farmers need to be clear and confident about what is being asked of them, otherwise it could cause issues down the line.

“In some cases, there is a disjoint between sustainability payments and new milk supply agreements,” he said.

Payments

Both Lakeland Dairies and Dale Farm, which together account for a significant share of the processing market in Northern Ireland, have announced plans to offer dairy sustainability payments from 2024 onwards.

Lakeland Dairies’ Farming for a Better Future strategy will offer farmers in Northern Ireland payments of 0.5p/litre for achieving a number of sustainability targets.

To be eligible, farm businesses must complete four of nine measures, including a mandatory Agricalc carbon audit.

The other measures relate to achieving targets for diverse membership, genomic testing, milk recording, nutrient management planning, tree or hedgerow planting, protected urea, sexed semen, or somatic cell counts.

Eamon Duignan, general manager of Lakeland Dairies member relations, said: “Lakeland Dairies suppliers have already shown they are clearly engaged with the need to take action to support biodiversity and improve our climate credentials.

“Our new sustainability incentive payment has been designed to build on the strong start and actions being made by farmers while ensuring the measures are verifiable and credible.”

Dale Farm is also due to introduce a 0.5p/litre sustainability payment in 2024.

Farmers supplying the processor will be required to hit certain sustainability targets to be eligible, such as an on-farm carbon audit.

Arla farmers across Europe already receive sustainability payments as part of its milk price in return for hitting specific sustainability targets.