Analysis by Teagasc and Cork Institute of Technology (CIT) claiming that Irish dairy farmers are the most profitable in Europe is flawed, in that it does not include the cost of the farmers' own labour or land, IFA dairy chair Tom Phelan has said.

“Farmers are operating at higher standards and higher costs for a milk price similar to 30 years ago. Improvements in milk fat and protein and quality have failed to return any price gains.

"There is a real danger that these figures will contribute to complacency by our processors who have been able to pay the lowest milk price in Europe because farmers are working harder and getting better.”

Reflective returns

The IFA has said that the timing of the report's publication drew into focus Glanbia's milk price, which remained unchanged from September.

Phelan said: "It is time that farmers were properly compensated for their work and investment. This has to be reflected in an increased milk price for the remaining months of this year.

"Dairy farmers are under significant financial pressure and are working harder than they ever have before. This race to the bottom must stop. The industry cannot sit back in smug satisfaction at this report, as it does not give the full picture."

While average levels of debt of €64,868 on dairy farms are mentioned in the report, the IFA highlights that 64% of dairy farms have an average debt of €112,000, as detailed in the National Farm Survey 2019.

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