The Irish Farmers' Association (IFA) has said that “enough is enough” and that the current milk price cuts are “record-breaking for all the wrong reasons”.

This week, Lakeland Dairies and Kerry Group announced reductions in milk prices for the second consecutive month.

IFA dairy chair Stephen Arthur said the 6c/l cut in milk prices announced by Lakeland Dairies and Kerry is disappointing.

He commented on how the instinctive reaction of co-ops to a global correction in commodity prices is vastly different to the way they have managed fertiliser prices.

“While global urea fertiliser prices have fallen by over 50%, the co-ops have been more reluctant to pass this on, but they have no problem in cutting milk prices,” Arthur said.

“It’s total hypocrisy and what could be described as an attempt to control the domestic fertiliser market.

"As we approach peak milk production, we need a sustainable milk price. Further cuts cannot be carried considering higher input costs,” he said.

Global markets

“Global markets would indicate that markets have stabilised in the past month.

"When the global market was heating up, the rise in milk prices was far more gradual, but now as things cool down, the price cuts are immediate and stark.

"A 6c/l cut represents a loss in excess of €40,000 for the average dairy farmer and this is the second cut this year,” Arthur said.

“While we all expected a correction in the market, the cuts made by processors are record-breaking for all the wrong reasons. Enough is enough,” he said.

Weaker returns

Lakeland Dairies commented that the reduction in the co-operative’s milk price for February was due to the weaker dairy market conditions.

“Generally weaker conditions have continued due to higher global milk supplies and fluctuating demand from dairy buyers.

“This is against a backdrop of economic uncertainty, with ongoing inflationary pressures impacting consumer, trade and manufacturing requirements for dairy products and ingredients,” it said.