Co-ops urged to halt milk price cuts

THE Irish Farmers’ Association has called on co-ops to halt milk price cuts and introduce savings through other measures.

IFA National Dairy Committee chairman Richard Kennedy issued the appeal as several processors embarked on milk price reductions.

The groups have blamed falling European Union supports for the drop in milk prices, which they describe as unavoidable.

But the IFA warned co-ops can’t keep digging into farmers’ pockets to subsidise their own inefficiencies.

However, it welcomed a decision by Drinagh and Lissavaird Co-ops in West Cork to hold the price of June milk.

But Mr Kennedy said it was a big disappointment that Dairygold had cut the price by 0.74c/l for June (3.36c/gal) and 0.44c/l for July (2c/gal).

Other neighbouring co-ops also cut June milk prices. Barryroe cut by 0.44c/l (2c/gal), Bandon by 0.33c/l (1.5c/gal), and Kerry by 0.66c/l (3c/gal).

Mr Kennedy said southern co-ops had held milk prices for 2006 until now, and most of them have implemented slightly lower price cuts than other co-ops further north.

“Dairy farmers all over the country are facing huge income losses mostly due to price cuts this year, and it is high time co-ops stopped their price-cutting logic,” he said.

Mr Kennedy said a 70-cow herd producing 25 litres of milk per cow per day stood to lose €388.50 in June alone in Dairygold, €346.50 in Kerry, and €693 in Glanbia.

Mr Kennedy said co-op board members must demand real savings for the coming year through joint initiatives, rule out milk price cuts, and implement a strategy to sustain milk supplies.

Dairygold Co-op said an expected reduction in the June milk price of 3.36c/gallon with a 2c/gallon reduction to follow in July was commercially unavoidable, blaming EU reductions in milk price support for hitting dairy returns.

Despite an improved market, and substantial cost reduction internally, the consequences of the reduced EU support have left the co-op short some 16c/gallon of the pre-mid term review returns.

Dairygold did not reduce milk price since May 2005, the society said.