Retailers need to stop using milk as a loss leader to attract shoppers and need to start treating fresh milk suppliers with respect, according to the IFA.

The premium paid to fresh milk producers has been eroded from around 5c/l up to a decade ago, to 2c/l or less in the last 10 years, IFA surveys show.

Persistent unsustainable retailer discounting of own-label products is one of the main reasons for this, the association has said.

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The IFA has called on retailers to commit to paying sustainable wholesale prices, to stop using fresh milk as a loss leader and to stop discounting to unsustainable levels.

IFA national liquid milk chair John Finn said he is looking forward to seeing retailers end their abuse and disrespect of the fresh milk producers.

“I also look forward to seeing our dairies market our milk to its true value, and refusing to engage in the race to the bottom which has seen them undercut each other to gain market share at our, the farmers’, cost,” he said.

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