With milk prices falling steadily for the past few months and global demand for dairy said to be waning, the Agriland team embarked upon a mission to garner insight from those most affected in the industry
In an exclusive video feature with relevant stakeholders, it became apparent that, across Ireland, the current price for liquid milk has dropped below the cost of production.
From the heart of Co. Tipperary to the dairy farms of Meath, the consensus was the same: Things need to change in order for the industry to continue sustainably.
Last year the dairy sector was thriving, with the highest price ever paid for liquid milk with prices around 57c/L. But over the past few months, the dairy sector has seen prices fall drastically.
Industry sources have told Agriland that the price for liquid milk has now dropped to between 36-37c/L.
Stakeholders and farmers say that as a minimum, they need 45c/L before they can make a profit.
Father and son, Joseph and Joe Hughes from Co. Wicklow told Agriland that although they have tried to keep input costs down “it is not that simple”, as they have a spring and autumn herd; the duo is now looking for alternative grass growing measures to cut down on meal.
“What’s happening outside the farm is not the cows’ fault,” Joe Hughes said.
“We can’t punish the cows in terms of not giving them extra meal or not looking after them. They’re our bread and butter and we have to look after the animals as much as we can first.”
While the milk price was at an all-time high, so were input costs such as fuel, meal, fertiliser, and energy.
The price of fertiliser has dropped over the past few months, however other input costs are still, in many cases, verging on unaffordable for many farmers if the price of liquid milk stays “below the cost of production”.
Pat McCormack, president of the Irish Creamery Milk Suppliers’ Association (ICMSA), mentioned the pressures the decrease in base price has added to businesses and farming families.
“2023 has been the most stressful period for any farm family. I feel it myself and every farmer that I speak to,” he said.
He added that the pressures have been felt nationwide and that farmers have said the “March and April period, combined with unprecedented wipe-out of their income, has made for an awful lot of stress”.