The Ulster Farmers' Union says dairy farmers will be disappointed with the outcome of this weeks Northern Ireland milk auction.

UFU Dairy Policy Chairman Jackson Wright said producers traditionally saw the March milk auction as a time when prices began to move upwards. However this months milk auction was marginally down on February prices.

57 million litres sold at the milk auction this week for an average price of 22.61 pence per litre. The average price in February was 22.99 pence per litre. Auction prices twelve months ago were 17.3 pence per litre.

Jackson Wright said; "Auction prices continue to be much higher than last year but so are production costs and that is the big topic with producers at present. The cost of feed, fertiliser and fuel continues to rise steadily and strong milk prices are essential for profitability."

DISAPPOINTMENT

Jackson Wright said there would be disappointment that March milk prices were not higher; "The Euro is at an all time high against Sterling and this should be boosting returns. Retail prices for milk remain strong and we heard recently at the Northern Ireland dairy conference that Australian milk production continues to be limited by low rainfall and a lack of fertile land.

Meanwhile global demand for dairy products is growing at a current rate of 2% per year.

"These should all be contributing to better milk prices and producers will continue to urge processors to deliver the best possible returns so that producers are able to offset the soaring production costs which they are now facing."