Warning after Glanbia cuts milk price

Dairy farmers are facing into a lossmaking 2012 due to Glanbia’s decision to shave 2.5c per litre off its May milk price, warns ICMSA deputy president and dairy chairman Pat McCormack.

Glanbia had already cut 3cpl off its price in April. Mr McCormack estimates this 5.5cpl cut may cost a 65-cow farmer €16,500 a year, based on a 300,000 litre output.

With fuel and animal feed prices also soaring, and with adverse weather conditions also hitting, dairy farmers could be €30,000 down overall for 2012 versus 2011. The CSO estimated average farm incomes at €21,500 for last year.