Retailers are being urged to return an extra 7c/L to fresh milk farmers this winter to help offset rising input costs by a farm organisation.

Grocers have also been urged to stock farmer-owned dairy brands, while consumers are being encouraged to look for milk bearing the National Dairy Council logo.

According to the Irish Farmers' Association (IFA) producing a year year-round supply of fresh milk requires "extra labour and incurs substantial additional costs".

But it warned today (Tuesday, November 3) that fresh milk farmers are facing higher costs while the farmgate price for milk remains low.

 Henry Dunne, the organisation's liquid milk chair, said: “Processors’ premiums for liquid milk production have been eroded by the considerable decline in the base milk price over the past two years.

"A fairer share of the existing retail price is what we are seeking".

According to the IFA seven milk processors handle the majority of Ireland’s fresh milk and "pay a premium above the standard manufacturing milk price".

The organisation said that five major supermarket retailers dominate the grocery market, with a combined share of 94%.

"An estimated 70% of retail fresh milk sales are now private label, sold at an estimated average discount of 15% compared with farmer-owned brands," it added.

Fresh milk farmers

According to the farm organisation private-label milk "sells at a lower price than branded milk".

It said that "persistent pressure to cut prices has margins for fresh milk producers to the point that there are now 66% fewer producers (1,094) than in 1995 (3,344)".

IFA has called on the National Milk Agency to ensure fresh milk farmers are "adequately compensated" and on the Agri-Food Regulator to bring "transparency to producer, processor, and retailer margins".

The National Milk Agency was established under the Milk (Regulation of Supply) Act, 1994 to regulate the supply of milk for liquid consumption throughout the state.