Retail Price Cuts on Milk & Butter a Kick in the Teeth for Farmers

IFA Liquid Milk Chair Henry Dunne has said the milk and butter price cuts announced by Lidl this morning are short term and will damage the sector. 

“This week we have huge spikes in fertiliser and energy costs and yet the supermarkets have made these cuts this morning. The cuts are tone deaf and a kick in the teeth for farmers,” he said.  

“The reality is that farmers who are set up to produce fresh milk, and therefore have higher costs, have had a very difficult winter with prices falling and costs rising,” he said. 

“IFA had contacted retailers and processors seeking an extra 5c/l for producers as we have huge viability issues at farm level. Now instead of passing back a modest increase to farmers the supermarkets have started a price war on milk and butter,” he said. 

“Farmers are exiting fresh milk production in significant numbers. Today’s announcement will speed up the exodus. Soon, we will not be producing enough milk during the winter months,” he said.