Milk Price Drop Very Concerning for Liquid Milk Producers

IFA Liquid Milk Chair Henry Dunne said the recent cuts to milk price are particularly concerning for liquid milk farmers who supply fresh milk to the domestic market.

“This cut has come at a time when many producer groups are meeting co-ops to point out the premium needed to cover the higher costs involved in producing milk on a year-round basis.”

While liquid milk farmers serve the domestic market with fresh milk, the price they are paid is intrinsically linked to the price paid for milk going for manufacturing. Thus, the downturn in the global dairy export market will also impact liquid milk farmers.

“The genuine fear is that any premium agreed will be eroded by cuts to the manufacturing base price”.

Teagasc has reported that the costs of maintaining the average cow for the year-round supply of liquid milk has increased by €460 since 2021 and costs remain stubbornly high.

“While there has been a lift in the retail price, the stark reality is that is much of this increase has been offset by higher input costs. The margins are extremely tight,” he said.

Latest reports from the National Milk Agency indicate that the number of registered liquid milk producers has declined by over 15% since 2020 and now stands at 1,200 suppliers.

“We cannot take the year-round supply of fresh milk on our retail shelves for granted.  We need a return that can sustain our businesses,” he concluded.