The Irish Farmers’ Association (IFA) is calling for support for dairy farmers as they face mounting financial pressures.
Speaking at the Virginia Show today (Wednesday, August 23), IFA president Tim Cullinan said that “challenging global markets” are placing a strain on the incomes of dairy farmers.
He said that banks will have “to step up and support dairy farmers”.
Global dairy markets remain challenged, mainly due to ample global supply of dairy product and weaker demand, particularly in China.
Market assessments earlier this year had suggested there could be a recovery in the final quarter (Q4) of 2023, however it is now doubtful that this will be the case.
Dairy farmers
The IFA Dairy Committee recently met to discuss the likelihood of cashflow shortfalls on dairy farmers due to the sharp drop in milk price.
“Farmers are really worried, particularly as they face potentially very large tax bills this autumn and we need to assist them.
“The milk price is falling rapidly, while our input costs are going the other way and that’s going to lead to significant financial pressure,” Stephen Arthur, IFA Dairy Committee chair, said.
The IFA will be engaging with banks and other credit providers to ensure farmers are properly supported financially over the coming months.
Arthur added that market returns have to be maximised to dairy farmers, while any reductions in input costs needs to be immediately passed on by processors.
“It’s absolutely vital that dairy processors return every single euro they possibly can to dairy farmers through the milk cheque.
“These processors also supply the bulk of dairy farmers inputs; we have to see input prices move downwards in the coming months too,” he said.
IFA National Liquid Milk chair Keith O’Boyle also said that liquid milk producers were particularly exposed to the challenging market as they commence calving their autumn herd.
“Spiralling meal bills and dismal premiums for liquid milk production have left us in a very vulnerable place.
“We need double the premium we’re getting in order to survive. The processors are well aware of this and they need to deliver on it in order to sustain the sector,” he said.