Farmers supplying liquid milk have expressed concerns that supermarkets could engage in a race to the bottom on milk price, after a series of retailer milk price cuts over the past week.

Lidl and Aldi were among the first to announce price cuts of 10c to their 2l own-brand drums of milk on Friday, followed by similar cuts in own-brand milk on the shelves of SuperValu and Tesco.

The IFA warned that the cuts could be followed by further drops in the shelf price of milk which open already cost-squeezed liquid milk suppliers up to the possibility of lower milk prices.

Dairy farmers have suffered successive blows on milk price over the first three months of this year as the sector gears up for peak supply.

Farmers told the Irish Farmers Journal that the move threatens the viability of the liquid milk sector and could significantly dent supplies into the winter when milk deliveries are at their lowest.

The price bonuses for liquid contracts are insufficient to justify calving cows in the autumn and milking 365 days/year will not be seen as an attractive option for younger farmers if prices do not reward the high production costs and lifestyle of winter milk, they said.

Kevin Healy, Co Wicklow

“When they start to cut, where will they stop? It is being used to get customers in the door, to get footfall. The costs are no different than they were last year. Yeah, fertiliser has come back a bit but meal, electricity and everything else is still high.

“People are moving away from liquid milk, especially after the expansion. You can’t see many staying in liquid milk in the next generation. It needs to be attractive. I would encourage people to leave the cut price milk on the shelf to leave a message but it’s hard to blame anyone who buys it.”

Liam Grady, Co Galway

“The biggest question is why? Why milk and why start it off again? We are near breakeven at this stage and the impact of the cuts will not be seen until next winter.

“It started with 10c cuts [on 2l containers] but who will be the next to move? It’s like a game of poker and this is not fair at a time of record costs.

“I would encourage the public to shop local, support farmers and buy co-op-branded milk. But I know that is hard to ask people to do when there is cheap milk there.

“People need to realise all the money farmers spend in the local economy and the activity they generate. If they don’t, there are questions there for the next generation. The people who might be 20 or 25 years younger than me are not going to milk cows over the winter if there is no reward for doing it.”

Larry Hannon, Co Kildare

“There will be a serious exodus from the liquid milk sector if this is not addressed. The returns we are making are putting us in jeopardy.

“I have done the figures on my own farm and it is the least profitable enterprise, the liquid milk, just with the costs involved. To justify the volumes there is a serious commitment to make.

“But it is the pinchpoint that the supermarkets need to look at. December and January are the point of risk when no supply is guaranteed.

“We don’t have to remain and with the advances in fertility and breeding, it would be very easy to switch completely in spring.

“There’s an intergenerational element to this too. There are none of the younger generation committed to supplying liquid milk. It’s a lot easier for them to switch entirely to spring.”