Irish farmers demand higher milk price
Irish farmers unions the Irish Farmers Association and the Irish Creamery Milk Suppliers Association have asked for significantly higher milk prices to counter the months-long decline in milk production in the country.
In April, milk production in Ireland was 8% lower than in the same month last year, following declines by 5.9% in March and 13.3% in February, resulting in a fall by 186 million litres (or 7.8%) over the first 4 months of the current year when compared with the same period in 2023 and by 209 million litres or 8.7% when compared with January to April 2022, the Central Statistics Office in Dublin has reported.
Milk volume
“Milk volumes continue to lag well behind 2023 levels, which means reduced sales for dairy farmers,” said Irish Farmers Association dairy chair Stephen Arthur. “Together with the increased cost of production from the very difficult spring, dairy farmers need to be paid for their product and we believe the market can support a price increase.”
He added: “An increase in price is needed to alleviate the cashflow pressure on suppliers, and it is essential that processors start returning the value gained in the market back to farmers. Dairy markets are firming up. We need our processors to return every cent they can to dairy farmers to support them during this very difficult period.” Arthur concluded.
His colleague, Noel Murphy at the Irish Creamery Milk Suppliers Association, also points to the strengthening of dairy markets: “The market justifies a price rise and dairy farmers need a strong signal from their milk processor that they understand the pressures on them at present to deliver a strong milk price increase. From high input costs to reduced milk supplies due to weather, costs and nitrates pressures, milk processors need only look at the input bills being built up by farmers to realise the pressures on their suppliers and the need for a major cashflow boost to get them through what has been an extremely difficult year thus far following a very difficult 2023.”
Ireland milk in 2024
“The year 2024 has seen Ireland milk supplies crash, with the weather a major factor, but milk processors should realise that margin is key and they haven’t been delivering a margin to dairy farmers over the last year that is sufficient to maintain supplies,” said Murphy.
He added that, given the pressures on dairy farmers and the forward movements in dairy markets, a base milk price of 0.45 euro cents per litre (currently it’s about 41 ct/l and 41.9 ct/l for May) is not only justified but required to restore a level of confidence in the sector and “another clear message from dairy farmers is that they are fed up with the ‘gimmick’ payments and the clear message from dairy farmers is pay us on base price and cut out the ‘gimmickry’.”
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