Recent cuts to milk prices are "particularly concerning" for liquid milk producers who supply fresh milk to the domestic market, the Irish Farmers' Assocation (IFA) has said.

IFA liquid milk chairperson Henry Dunne said cuts come at a time when many producer groups are meeting co-ops "to point out the premium needed to cover the higher costs involved".

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 IFA said.

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

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, according to the IFA.

“While there has been a lift in the retail price, the stark reality is that much of this increase has been offset by higher input costs," Dunne said. 

"The margins are extremely tight.

"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."

Dunne said that the year-round supply of fresh milk on retail shelves cannot be taken "for granted".

"We need a return that can sustain our businesses," he added.