Retailers have been “engaged in unjustified price cutting” of fresh milk on their shelves and should restore the price by 10 cent per litre.
That is according to the Irish Farmers’ Association, liquid milk chair, Keith O’Boyle, who today (Friday, June 21) called on retailers to reverse the price cuts they introduced last year.
O’Boyle said that prices were reduced by some retailers by five cent in late April 2023 and a further five cent per litre last June.
“This combined 10c/L must be restored immediately and passed back through the supply chain, directly to the farmers who produce liquid milk.
“It’s absolutely necessary to secure the supply of fresh Irish milk into the future,” he said.
According to O’Boyle if the retail sector is really serious about “sustainability” then it should also acknowledge that farmers “need to have their costs of production fully accounted for by the food supply chain”.
Fresh milk
The IFA liquid milk chair also warned that poor weather conditions throughout 2024, combined with high production costs “have exposed the vulnerability of the fresh milk sector” which he believes is now at a critical juncture.
“If we don’t get an increase, the supply of liquid milk will continue to contract.
“We cannot let this trend continue to a point when the supply of fresh milk is jeopardised in Ireland. Our sector will simply disappear,” he said.
According to the IFA the number of farmers who supply to the retail market has fallen consecutively every year since 2002.
It estimates that there are currently only 1,286 suppliers.
O’Boyle added: “The cost of producing fresh milk all year round is considerably higher than seasonal milk production so when farmers are faced with falling incomes and increased regulation, they are being forced to take out their year-round milk production systems.
“Up to now, increased herd sizes and increased yields per cow have sustained supply despite falling numbers of suppliers, but we have reached the end of the road”.
He has warned that if there is not an increase in retail prices then farmers will no longer be able to afford to continue with a year-round production model.