April 12, 2023

 

Irish Farmers' Association issues warning on further milk price cuts

 

The Irish Farmers' Association (IFA) is concerned about the impact of further milk price cuts this month on dairy farmers in the country, Agriland reported.

 

The base price for milk offered by all processors has been significantly reduced in the last two months.

 

Stephen Arthur, chairperson of the IFA National Dairy Committee, said that dairy farmers cannot sustain further milk price cuts.

 

Arthur said farmers have seen milk price cuts of more than 10c/L since January, equating to a EUR 50,000 income reduction for the average supplier.

 

He also said many processors will remove early calving bonuses in March, causing farmers to lose income before any changes to base price are made.

 

He drew attention to the country's recent spell of rainy weather, adding that the Irish National Meteorological Service reported that this past March was the wettest March on record.

 

The IFA dairy chair said cattle are being housed across the country, resulting in significant drops in milk supplies, while feed and fertiliser prices remain at record highs. All of this means that the overall cost of production for 2023 has risen.

 

He said the IFA is aware that many boards will be deciding on milk prices this week. Board members must listen to their suppliers' concerns and maintain milk prices at current levels, he said.

 

Arthur's comments echo similar concerns expressed last week by the Irish Creamery Milk Suppliers' Association (ICMSA).

 

If there is another round of March milk price cuts, Noel Murphy, ICMSA dairy chairperson said dairy farmers' margins will be completely wiped out.

 

The ICMSA has urged that base milk prices remain unchanged for the rest of the year.

 

Murphy stated that cooperatives have implemented massive price cuts at the farmgate in the first two months of the year.

 

-      Agriland