The Irish Creamery Milk Suppliers’ Association (ICMSA) has today (Friday, May 13) confirmed that it is cutting the milk levy contribution paid by its members by 33%.
The reduction in the levy, which is based on a percentage of milk value, will apply for the remainder of this year.
The farming organisation said that the decision was due to the extraordinary rise in farm input costs.
“The year 2022 has been unprecedented so far with substantially increased milk prices.
“But the reality for dairy farmers is that the increased milk prices will be absorbed by the massive increase in inputs costs from fertiliser to feed to energy and all other input costs,” an ICMSA spokesperson said.
The organisation noted that it has begun to resume “normal activities” as Covid-19 restrictions have eased.
“Any shortfall in funding in 2022 will be addressed by savings made during 2020 and 2021 due to the Covid-19 lockdown,” the spokesperson added.
Figures published earlier this week (Wednesday, May 11) by the Central Statistics Office (CSO) revealed that fertiliser prices in March increased by 149% compared to the same month last year.
Fertiliser costs rose by almost 12% on the previous month.
The data also showed increases in energy prices, which rose by 55% and in feed prices, which are up by 22.6% compared to March 2021.
The CSO agricultural input price index is up by 34.8%, while the output price index increased by 21.8% compared to the same month in 2021.
Between February and March 2022, the agricultural output price index rose by 4.7% and the input price index by 6.7%.