The base milk price today should be 67c/l had returns kept pace with inflation since the 1970s.
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There was a lot of talk inside and outside the Dáil in recent weeks about food inflation, and how the retail price of a litre of milk in some shops is nearly the same as a litre of petrol.
As per usual, the debate took place almost entirely from the perspective of the consumer. There was very little discussion around returns to the primary producer and how they have kept pace, or not, with inflation over time.
So, your scribe decided to do a bit of digging on historic milk prices and found that in July 1976 dairy farmers were paid 34p per gallon for milk, which equates to around 9.5c/l.
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Using a historic converter which takes account of annual inflation rates and consumer price index data, the 1976 figure should give a base milk price today of 67c/l. Instead, quotes are currently at 49-50c/l. That actual base milk prices are 17c/l or 34% below where they should be had they kept pace with inflation since 1976 is a point that was not made in the discussions. Surprise, surprise.
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There was a lot of talk inside and outside the Dáil in recent weeks about food inflation, and how the retail price of a litre of milk in some shops is nearly the same as a litre of petrol.
As per usual, the debate took place almost entirely from the perspective of the consumer. There was very little discussion around returns to the primary producer and how they have kept pace, or not, with inflation over time.
So, your scribe decided to do a bit of digging on historic milk prices and found that in July 1976 dairy farmers were paid 34p per gallon for milk, which equates to around 9.5c/l.
Using a historic converter which takes account of annual inflation rates and consumer price index data, the 1976 figure should give a base milk price today of 67c/l. Instead, quotes are currently at 49-50c/l. That actual base milk prices are 17c/l or 34% below where they should be had they kept pace with inflation since 1976 is a point that was not made in the discussions. Surprise, surprise.
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