Speaking at the show in Co Cavan, Healy said there is serious cashflow pressure on farms: “With milk prices still below production costs despite the July increase, Minister for Agriculture Michael Creed must address the continuing serious cashflow pressure on farms through prompt delivery of the EU aid package in the coming weeks, and by making available immediately the low-cost cashflow loans IFA has proposed.”

He also spoke of some recovery in the international dairy market, with production growth falling in most dairy regions, except the US, and an increase in global demand, which has helped rebalance the market, he said.

“While this will enable co-ops to increase milk prices further over the coming months, and they must budget for those uplifts, the cashflow situation on farms will remain problematic for some time yet because prices had fallen well below production costs.”

European aid package

IFA national dairy committee chair Sean O’Leary also commented that: “Minister Creed must deliver urgently a financial package allowing farmers in all sectors to convert their accumulated merchant credit, utility, superlevy and other bills into low-cost, short-term loans they will start repaying in a year or more when incomes recover.

“We have made detailed proposals for this type of loan package, based on the state aid rules, including the €15,000 concession agreed in Brussels earlier this year, and while the response from the Minister has been positive, the time for delivery is now,” he concluded.

More coverage of the Virginia Show to follow.