Dairy farmers ‘to lose €19k each’ this year

THE average Irish dairy farmer will lose €19,000 this year as the income crisis on Irish dairy family farms intensifies, the IFA said yesterday.

The IFA National Dairy Committee held a protest at the offices of the European Commission to highlight what it described as the severity of the current income crisis on Irish dairy family farms, and the critical need for urgent action. The protest coincided with a meeting in Brussels of the EU Agriculture Council at which the EU-wide dairy crisis is to be discussed.

Chairman Richard Kennedy said: “We want the Irish Government and the European Commission to fully realise just how severe the hardship is which dairy farm families are facing at the moment.”

“Low milk prices, high production costs, bad weather and scarce credit have created an unprecedented income and cash flow crisis on Irish dairy farms. While current milk prices are around 20c/l, production costs are 7c/l above that, so that the average dairy farm family will end 2009 not only with no income, but €19,000 in the red,” he said.

“In our seasonal production system, dairy farmers generate the bulk of their incomes during the months of March to July. Already, farmers have received their first two cheques for these critical months, and many have found bills instead of money in those two envelopes,” he added.

And Mr Kennedy said: “Wet weather has forced many to bring cows back indoors, scrambling to feed them with scarce and expensive silage. For many dairy farm families, coping with household bills is a major challenge,” he said.

“20,000 farm families and another 9,000 processing jobs depend on a thriving dairy sector, and at the moment, this sector is in an unprecedented income and cash flow crisis which, without determined action by our Government and the EU, could damage it irreparably,” he added.

Mr Kennedy said Minister for Agriculture Brendan Smith must demand that the fullest use be made of currently available market supports. Butter refunds must be increased, to kick-start trade and remove meaningful quantities of butter from the EU market.