The Irish Farmers’ Association (IFA) has raised concerns over what further milk price cuts this month could mean for dairy farmers.
The last two months have both seen significant cuts to the base price for milk offered by all processors.
Speaking this afternoon (Tuesday, April 11), IFA National Dairy Committee chairperson Stephen Arthur said that dairy farmers cannot sustain anymore cuts to milk price.
“Farmers have endured milk price cuts in excess of 10c/L since January which equate to an income reduction of €50,000 for the average supplier.
“Many processors will remove early calving bonuses in March so farmers will endure a cut in income before any changes to base price are made,” Arthur said.
He drew attention to the recent spell of wet weather the country has experienced.
“Met Éireann has reported that this past March was the wettest March on record, while the start of April has seen absolutely no let up,” the IFA dairy chair said.
“Dairy farmers are near breaking point now. Cows are housed throughout the country resulting in big drops in milk supplies, while feed and fertiliser prices remain at record levels.
“All this mean that the overall cost of production has soared for 2023,” Arthur added.
“We know a lot of boards will be deciding milk prices this week. Board members must listen to the concerns of their suppliers, and have to sustain milk prices at current levels,” he commented.
Arthur’s remarks echo similar concerns that were expressed by the Irish Creamery Milk Suppliers’ Association (ICMSA) last week.
ICMSA dairy chairperson Noel Murphy said that margins for dairy farmers will be “completely wiped out” if there is a further round of cuts for March milk.
The ICMSA is calling for base milk prices to be held at their current levels throughout this year.
Murphy said that co-ops have implemented “massive cuts to farmgate prices” in the first two months of the year.
“There is no doubt that prices had to come back, but it is now approaching a level where costs of production are coming close to and, in many cases, exceeding the base price,” Murphy said.