Connacht predicts 25% cut in farm income if milk prices fall below 30c

Connacht Gold’s year-end milk price projections in the “mid-to-high twenties” could lead to some dairy farmers taking a hit of more than 25% in their present incomes.

Connacht Gold chief executive Aaron Forde’s cautious projection is in line with statements last week made at the unveiling of Arrabawn’s annual report, which suggested a possible milk price cut from the present 34c per litre (cpl) supplied by the farmer down to 28cpl by the end of 2012.

Huge milk price cuts in Dutch and New Zealand auctions have been cited as strong indicators towards trends for the remainder of this year.