Milk producers ‘driven out of sector’
IFA president John Dillon told the Fresh Milk Producers Liquid Milk Conference the number of suppliers in the country is now less than 3,000.
“We know it is largely economic factors that are driving producers away,” he said.
The conference heard that FMP suppliers are producing for three top grocery brands in the country, which generate sales in excess of 165 million per annum.
Mr Dillon said producers are being constantly pressurised to take a reducing share of this cake.
“Every link in the chain deserves to get a fair return for their investment and effort, not least the primary producer,” he said.
Mr Dillon said cheap imports form Northern Ireland now stand at 13% of the market or 15 million gallons.
The industry in Britain is in a sorry state even though the average supplier produces 105,000 gallons.
“However, they do not have a price they can survive on and we cannot allow our market to be destabilised by this situation,” he said.
Mr Dillon added that Glanbia must not allow cheap imported packaged and bulk milk from Northern Ireland to undermine the southern liquid market.
Meanwhile, a decision by Glanbia to hold the manufacturing milk price for October was welcomed yesterday by IFA National Dairy Committee chairman Michael Murphy.
He said dairy farmers badly needed milk price increases which would happen if the EU Commission allowed the ongoing dairy market recovery to develop fully.
Mr Murphy claimed that Agriculture Minister Joe Walsh had failed to reverse the policy of dampening markets pursued by the EU Commission in the last couple of months.
He said Ireland must insist at today’s EU Dairy Management meeting, on a higher price for skim milk price sold out of intervention, so that the dairy market recovery translates back to better returns to co-ops and better milk prices to producers.
Mr Murphy said Minister Walsh must also see to it that export refunds be held firm to allow for improved returns to exporters.
