The IFA's liquid milk chair has been keen to underscore that contracted winter milk prices are linked with manufacturing milks' prices. / Philip Doyle
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The IFA has warned that winter milk contract bonuses could be eroded as co-ops move to reduce base milk prices.
The IFA’s liquid milk chair Henry Dunne stated that the base milk price downturn witnessed this month comes as the average costs of maintaining a cow in winter milk jumped €460 since 2021, with little sign of these costs reducing.
“This cut has come at a time when many producer groups are meeting co-ops to point out the premium needed to cover the higher costs involved in producing milk on a year-round basis,” Dunne said in reference to processors’ recent August milk price announcements.
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“The genuine fear is that any premium agreed will be eroded by cuts to the manufacturing base price.”
The IFA cited the National Milk Agency’s latest report in stating that there has been a 15% decline in the number of farmers registered to supply liquid milk, leaving the number now standing at just 1,200 farmers.
“While there has been a lift in the retail price, the stark reality is that is much of this increase has been offset by higher input costs. The margins are extremely tight,” Dunne said.
“We cannot take the year-round supply of fresh milk on our retail shelves for granted. We need a return that can sustain our businesses.”
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The IFA has warned that winter milk contract bonuses could be eroded as co-ops move to reduce base milk prices.
The IFA’s liquid milk chair Henry Dunne stated that the base milk price downturn witnessed this month comes as the average costs of maintaining a cow in winter milk jumped €460 since 2021, with little sign of these costs reducing.
“This cut has come at a time when many producer groups are meeting co-ops to point out the premium needed to cover the higher costs involved in producing milk on a year-round basis,” Dunne said in reference to processors’ recent August milk price announcements.
“The genuine fear is that any premium agreed will be eroded by cuts to the manufacturing base price.”
The IFA cited the National Milk Agency’s latest report in stating that there has been a 15% decline in the number of farmers registered to supply liquid milk, leaving the number now standing at just 1,200 farmers.
“While there has been a lift in the retail price, the stark reality is that is much of this increase has been offset by higher input costs. The margins are extremely tight,” Dunne said.
“We cannot take the year-round supply of fresh milk on our retail shelves for granted. We need a return that can sustain our businesses.”
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