With milk prices coming under increased pressure this year, dairy co-ops and processors have said they have been forced to dip into reserves to support milk prices. August milk prices were in the region of 25c/litre for most co-ops.

In an interview with the Irish Farmers Journal in August, Dairygold chief executive Jim Woulfe said the co-op had spent €19m in support for milk price to its farmers between January and June as a result of the depressed market.

Stan McCarthy said at the opening of Kerry Group’s new €100m innovation centre on Thursday that processors supported prices to help the sector.

“I think one has to recognise that the processors staggered the real market,” the Kerry Group CEO said.

Market correction

“If you were following the price paid to the farmers with the market then you would have a much worse situation. So it will take a little while for that situation to correct itself,” McCarthy added.

“Listen, we have been through this before. We have to be prepared to do that because the farmer has to be producing milk on into the future for the business model to continue. A couple of months is a short period of time and I think processors did the right thing by supporting it [the milk price] and it will be the right thing for all parties over time,” McCarthy added.