A detailed analysis must be carried out to determine the full costs associated with the production of milk in Ireland, according to ICMSA President John Comer.
“We are meeting Teagasc on this issue over the coming days. This ties in with a study to be carried out by the European Milk Board, which will identify the full costs of producing milk in each EU member state.”
He added: “Labour must be included in all production-related costs. The costs associated with succession must also be included. Farmers must have the opportunity to take time off and spend downtime with their families.
“And, obviously, there is a cost associated with all of these activities – which must be reflected in the official cost base compiled for the milk sector.
There is a deficit in understanding of production costs – at all levels within the milk industry.
Commenting on the prospects for farm-gate milk prices, Comer said that the next few weeks will be critical.
“We have seen successive price rises at the last two Global Dairy Trade events. This trend is also being reflected in the Ornua price index. So there is genuine scope for processors to move milk prices forward to some extent, over the next couple of months at least.
“After that, we get into the volume game. It’s a reality that the 2% of the world’s milk that is traded internationally dictates the price received by the global dairy sector as a whole.”
Comer said that if world milk output remains steady over the coming months, this should impact on farm-gate prices accordingly.
This holds out the prospect of Irish milk producers enjoying a stable year, relative to 2016.
However, he gave no credence to the view that problems faced by other dairy nations, such as the recent floods in New Zealand, would boost the dairy sector in this country.
“Our own governance measures should be sufficiently robust to allow us to have control over our own destiny – at all times,” he concluded.