Dairy farmers protest over milk prices

Dairy farmers say milk prices are 7c/l short of their break-even target of 40c/l of milk

Liquid milk producers took to Grafton Street to tell consumers of the difficulties they are currently facing; claiming they are a making a loss of around 7c/l of milk produced.

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A group representing around 3,000 Irish milk producers brought a campaign to Dublin city centre on Wednesday (27 February) in an attempt to secure better prices from retailers in order to survive.

IFA National Liquid Milk Committee chairman Teddy Cashman said specialist liquid milk producers were taking their campaign to the Dublin to highlight the fact that they are making a loss from supplying year-round fresh milk to supermarkets.

"If we have learned anything in recent weeks, it is that it costs money to produce quality food. In recent years, increased pressures on margins along the retail chain have left us farmers, the last link in that chain, having to take prices which leave us at a loss," said Cashman.

The Milk Committee chairman explained to shoppers on Grafton Street that, to guarantee constant supplies of fresh, high-quality milk on supermarket shelves for consumers, liquid milk producers have to produce milk year-round. This involves substantially higher costs than those incurred by creamery milk suppliers, especially in the areas of feed and energy.

"While every dairy operates different milk pricing systems, liquid milk producers today are producing milk for a price which does not cover our production costs. We need an annual average price of 40c/l to cover costs and pay a modest wage for our own labour, but our prices fall around 7c/l short of this break-even target," he said.

Cashman calculated this means the specialist liquid milk supplier producing 250,000 litres is losing €17,500 over a whole year’s milk supplies; a situation he described as "totally unsustainable".

"To remunerate liquid milk producers fairly, dairies need to sell our milk harder and negotiate the equivalent of an additional 8% of the current average retail price to pass it back to us.

"This also means that retailers must take more responsibility for the sustainability of their supply sources, and this does not have to cost already hard pressed consumers," added Cashman.

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