Milk prices must reflect input costs

DAIRY co-ops have been warned that they simply can’t ignore the fact that farm input costs, particularly for fertiliser, feed and energy, have increased substantially this year when fixing the price they pay farmers for milk supplies.

Irish Creamery Milk Suppliers Association deputy president, John O’Leary, called on the co-ops to at least maintain April prices as suppliers will not absorb a further cut in returns.

He said the ICMSA estimates that additional variable and fixed costs in 2008 at over 4 cent per litre of milk is equivalent to over €9,000 for a full year’s milk production, for a 50,000 gallon milk producer.