Reacting to the decision by the main retailers to cut the price of fresh milk, IFA Liquid Milk Chair Keith O’Boyle said IFA was very concerned at the development.
“A price war on milk could do serious damage to those farm families who specialise in producing fresh milk rather than milk which is converted into products with a longer shelf life,” he said.
“There has been huge inflation in production costs for all farmers. However, those who specialise in fresh milk produce all year round, including over the winter months, have even higher costs. If these farmers do not get a return to cover the extra costs involved, they will change to producing milk for manufacturing”.
“The number of farmers who are committed to supplying milk all year round has significantly declined. While consumers might see price cuts as a positive development, it risks the medium to long term sustainability of fresh milk production in Ireland,” he concluded.