Irish Farmers’ Association (IFA) liquid milk chair Henry Dunne has stated that milk and butter price cuts announced by retailers on Thursday “are short-term and will damage the sector”.

“This week, we have huge spikes in fertiliser and energy costs and yet the supermarkets have made these cuts this Thursday. The cuts are tone deaf and a kick in the teeth for farmers,” Dunne said.

“The reality is that farmers who are set up to produce fresh milk - and therefore have higher costs - have had a very difficult winter with prices falling and costs rising,” he said.

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Dunne discussed the farmers producing fresh milk have higher costs, as well as a difficult winter due to price drops and increasing input costs.

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Dunne stated: “[The] IFA had contacted retailers and processors seeking an extra 5c/l for producers, as we have huge viability issues at farm level. Now instead of passing back a modest increase to farmers, the supermarkets have started a price war on milk and butter.”

“Farmers are exiting fresh milk production in significant numbers. Today’s announcement will speed up the exodus. Soon, we will not be producing enough milk during the winter months,” Dunne concluded.