February 19, 2008

Irish milk producers push for higher revenues as prices climb

Ireland's milk market returns have increased to EUR150 million (US$221 million), yet farmers have only received a fraction of this, Irish Farmers' Association (IFA) chairman Eamonn Bray said.

Over the last 12 months, retail prices increased between 23 cents per litre or EUR1.04 (US$1.53) per gallon for multiples' own-brand milk and more than 32 cents per liter or EUR1.45 (US$2.13) per gallon for branded milk, Bray said.

Ireland's producers have only received year-on-year increases of 8 cents per litre, worth around EUR42 million (US$62 million) over a 12-month period.

Summer prices paid in 2007 were actually below current manufacturing milk prices, IFA said.

Dairies can easily afford to, and must, deliver much stronger summer milk price increases for liquid milk producers in 2008 if they are to secure the commitment of their liquid milk suppliers, Bray pointed.

IFA is aiming for a 38-cent-per-litre payment to producers to cover feeding costs.