APRIL PRICE CUTS A BLOW TO DAIRY FARMERS

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APRIL PRICE CUTS A BLOW TO DAIRY FARMERS
13 May 2020

APRIL PRICE CUTS A BLOW TO DAIRY FARMERS

COVID-19, Dairy

IFA National Dairy Chairman Tom Phelan said the 1c/l April milk price cut announced early this week by both Glanbia and Lakeland was a further blow to dairy farmers on top a 2c/l and 1.8c/l cut respectively applied last month.

“It means the price to farmers is down by approximately 3c/l since March which will have a huge impact on the farmer’s margin,” he said.

He urged other co-ops to focus their attention on taking other costs out of their businesses.

“These cuts will have a big impact because they are cumulative and they are applying as we reach the peak production period. For a 500,000l milk supplier, assuming no further adjustment, those cuts will take up to €6,500 off their March to June milk sales.”

“Farmers need to be able to maximise their income in peak months, which coincide with the greatest demands on their cashflow, with many bills owing to the co-ops themselves due at this time of year,” he said.

“All co-ops must reconsider their profit and margin expectations for April, and come forward with ways to support farmers by redirecting their focus on costs other than milk price,” he concluded.

 

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