The Irish Farmers’ Association (IFA) has said that reductions in consumer prices for milk among a number of retailers could damage producers.
Yesterday evening (Friday, April 28), Lidl announced a reduction in prices for several products in its own-brand Coolree Creamery range.
The retailer said: “We are committed to helping customers throughout this cost of living crisis. We are happy to be the first grocer to pass on savings for all of our fresh Irish milk.”
A 2L carton of Coolree Creamery Fresh Irish Milk will see a price reduction on 10c, from €2.29 down to €2.19. A 1L carton of the same product will decrease from €1.15 to €1.09, while a 3L carton is down from €3.20 to €3.09.
Other products in the Lidl own-brand range will see reductions of between 2c and 10c.
The retailer said that the price reductions will be effective from today (Saturday, April 29), and “will pass €2.7 million in savings directly on to our shoppers here in Ireland”.
It has been widely reported that a number of other retailers will implement price reductions in their milk products in the coming days.
These price reductions have sparked concern for the IFA, which said dairy farmer margins could be negatively impacted.
Reacting to the decision by the main retailers to cut prices, IFA liquid milk chairperson Keith O’Boyle said the association was “very concerned at the development”.
“A price war could do serious damage to those farm families who specialise in producing fresh milk rather than milk which is converted into products with a longer shelf life,” O’Boyle warned.
He added: “There has been huge inflation in production costs for all farmers. However, those who specialise in fresh milk produce all year round, including over the winter months, have even higher costs.
“If these farmers do not get a return to cover the extra costs involved, they will change to producing for manufacturing.”
The number of farmer who are committed to supplying all year round has already significantly declined, according to O’Boyle.
He said: “While consumers might see price cuts as a positive development, it risks the medium to long term sustainability of fresh milk production in Ireland.”