The dairy farmer from Oranmore, Co Galway, said that in his new role as IFA liquid milk chair he plans to “lead milk producer groups from all around the country in a united fight to ensure cut-throat competition between dairies and retailers is not allowed to erode the milk price that specialist farmers need to remunerate their higher production costs,”

“The committee has established that the cost of producing a litre of fresh milk and to pay a modest wage to the producer comes to around 40c/l.

“In the last 12 months, our annualised prices have averaged out only 30 to 31c/l, and this despite the fact that the retail returns for fresh milk, unlike global dairy markets, have remained very stable.”

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John succeeds outgoing chair Teddy Cashman, who he said had done “a terrific job in demonstrating the unique value of fresh, locally produced milk for Irish consumers”.

He also plans to focus on input costs, which he said “uniquely impact liquid milk producers”.

Grain prices

The new liquid milk chair offered his full support to the campaign to obtain more competition in the fertiliser market with the elimination of EU import tariffs, adding that the low grain prices need to reflected in much lower ration costs.

Imports from Northern Ireland were of a record volume last year. Despite this, John believes the National Dairy Council (NDC) logo has changed the way retailers see the product.

John told the Irish Farmers Journal: “Since the National Dairy Council logo came in, it has made a difference. Retailers want that NDC logo and customers want it too. People want locally produced milk and to know it’s coming from an Irish farmer and that they are helping the local economy.

“It’s really made people aware of where their food is produced. We can’t stop imports but we can boost our local economy.”

Increasing margins

Some of the milk produced in Ireland is being brought to Strathroy in Omagh, Co Tyrone, for processing, but does not currently carry the NDC logo.

On this issue, John believes “they can’t have it every way and a line has to be drawn. That milk is being processed out of the country. Only milk produced and processed locally should carry the NDC logo.”

Over the past four years, autumn calving figures have dipped approximately 10%.

“The margin has to be higher to make it attractive and to keep farmers producing liquid milk,” John said.