National Milk Agency warns of precarious outlook for dairy sector interests

THE short-term outlook for all interested parties in the Irish dairy sector is precarious, according to the National Milk Agency, which regulates the supply of milk for liquid consumption in the State.

Chief executive Denis Murphy stated in the agency’s annual report for 2008 that the industry is in crisis. Processors are confronted by falling market prices and margins and dairy farmers are facing substantial income reductions in the current year.

Mr Murphy stated that in the first quarter of 2009, the decline in international dairy product prices has continued and, despite increased market supports, EU producer milk prices have fallen sharply.