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The national average retail price for milk in all pack sizes decreased to 89c/l last year, according to the 2017 annual report from the National Milk Agency (NMA).
It marks a 3% slide from the 92c/l paid in 2014, and charts a continuous downward trend for the average retail milk price.
Retail milk prices have been criticised recently, as milk appears to be used as a loss leader by some large discounters, including Iceland and some Aldi stores, that are selling 2l of milk for €1.30.
The discounting of milk was highlighted as a “grave concern” by Denis Murphy, chair of the NMA, who wrote to all major retailers last November outlining concerns over continued cuts.
IFA national liquid milk chair John Finn has criticised Aldi’s membership of Origin Green, saying unsustainable discounting must come under scrutiny and be stamped out.
President of the ICMSA Pat McCormack pointed out that a continued “race to the bottom” would ultimately hurt processors.
Overall, 2l own-label milk was sold for an average discount of 27% less compared with processors’ brands.
It is estimated that 62% of all milk is sold under own-label brands by retailers, and the fresh milk market relies heavily on retailers, which account for 79% of all fresh milk distribution.
Overall milk supply increased by 9% in 2017 to 7.2bn litres, and the average share of the price farmers received for retail milk rose from 29.9c/l to 38c/l, reflecting the year of better milk prices in 2017.
Northern Ireland’s milk pool increased by 4% to 2.2bn litres, with farmers paid an increased average of 32.59c/l for all-year-round milk, but it was still 2.8c/l less than annual average prices in the Republic for manufacturing milk.
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