Liquid milk producers can’t be expected to take milk price cuts of 7c/l when input costs remain high, says the Irish Farmers' Association (IFA).

IFA liquid milk chair Keith O’Boyle warned that milk processor price cuts for January supplies of between 5c/l and 7c/l have eliminated the liquid milk premium farmers should receive.

“Our autumn calvers are at peak milk production in January, so milk price cuts of this magnitude have a profound impact on our profitability and effectively wipe out our premium,” he said.

Costs

O’Boyle described how input costs for dairy farmers producing fresh milk through the winter months remain at “an all-time high”.

He highlighted that the system requires a greater dependence on the use of concentrate feed, which is costing in excess of €500/t at present.

“We simply cannot afford to take these kinds of hits to our profit margins. Without a liquid milk premium, the supply of daily fresh milk for supermarket shelves will become unsustainable.”

Bonuses

The IFA liquid milk chair said that while milk processors continue to encourage spring milk producers to produce more milk early in the year by offering seasonal or early lactation bonuses, these are not available to liquid milk producers.

“These bonuses must be paid to liquid milk producers with immediate effect for all the milk we produce in January, February and March.

“Liquid milk processors cannot expect us to take cuts of seven cent per litre,” he said.

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