A Northern Ireland milk strike is now a 'strong possibility', according to Farmers for Action.
The group said they will be holding a crisis meeting towards the end of November which could enable a strike to be given the go-ahead around the Christmas period.
"All Northern Ireland dairy farmers will be welcome and a vote will be taken after the debate to have a milk strike unless corporate food retailers, corporate food wholesalers and co-op milk processors put their contempt for NI dairy farmers behind them," said William Taylor from the group.
"Northern Ireland’s dairy farmers now have nothing to lose by striking as milk is in short supply, the EU reduction support is available and not forgetting that milk is worth approximately 10p/l as fertilizer.
"At long last this puts NI farmers in the driving seat where they now have the power to deliver fairness at the farm gate."
'Significant' winter milk bonus
Last week, Ulster Farmers' Union dairy chairman William Irvine welcomed a commitment from United Dairy Farmers to pay suppliers a 'significant' winter milk production bonus.
He said that since United was the biggest buyer of milk here it was encouraging that farmers were set to gain from a policy that reflected what was happening on dairy markets.
"It seems ironic that as the EU’s Voluntary Milk Production Reduction Scheme is being implemented, United finds itself in the position of needing more milk to satisfy the business it has through its Dale Farm brand," said Mr Irvine.
"This is encouraging news for producers – and I hope other processors will follow United's lead to allow farmers to benefit from what is happening on national and global dairy markets,” said Mr Irvine."
The UFU, who has just recently completed a series of meetings with local dairy processors encouraging them to pass the recent commodity price gains on to producers, says the United bonus will come as a welcome cash flow boost for farmers at a time of the year when costs begin to climb.
Mr Irvine said he was hopeful the winter would bring the combination of a higher milk price and manageable costs.
He stressed however that this would not cure the problem the industry has faced for the past couple of years.
"It is encouraging to see developments like this. Price improvements will boost farmers' confidence, but there is a long way to go before the industry is back on an even keel.
"Part of this is clearing the huge debts that have built up operating below the cost of production for such a long time.
"However, farmers are positive by nature, and they will see this move by United as a big step in the right direction,” said Mr Irvine.
The dairy committee chairman added that while some farmers might gain from the EU scheme to cut milk production, this latest development underlines why the UFU was never convinced that the answer to low prices globally was to reduce production here.
"The indications are that markets are recovering and that is why United is offering a bonus, and farmers want to be in a strong position to meet market demand," said William Irvine.