Fears over North milk imports

GROWING imports from the North are posing serious concerns for the stability and viability of the liquid milk sector in the Republic, the National Milk Agency (NMA) has warned.

The NMA, the regulatory body for the supply of milk for liquid consumption in the State, reports that the share of the domestic liquid milk market sourced from indigenous supplies fell to 83% last year.

This was due to market penetration by growing volumes of imports from the North, particularly of bulk milk for processing. Total milk imports for liquid consumption increased by 8% and amounted to 93 million litres (20.5 million gallons). A total of 59% was for processing and 41% was packaged liquid milk.

Milk imports, which were the highest on record and mainly from the North, secured a 17% share of the 556 million litres (122 million gallons) domestic market for liquid milk, compared with 15% in the previous year.

Last year, imports from the North of milk for processing and packing for liquid consumption, mainly by processors located in border counties, amounted to 55 million litres (12.1 million gallons), an increase of 14% on 2003.

In the NMA annual report, Denis Murphy, chairman, stated that the continued growth of these imports, together with the availability of all year round milk supplies in the North at net producer prices, which in 2004 were about the same as producer prices for seasonal supplies of manufacturing milk in the State, pose serious concerns for the stability and viability of the liquid milk sector here.