Milk producers in fear of livelihood target 20m-gallon imports
Milk producers cannot continue to accept any reductions in their returns, while milk imports are eroding the market, said Donal Kelleher, chairman of the IFA’s National Liquid Milk Committee.
“Producers are now being asked to take a cut of 5p/gallon. The price to the consumer does not come down, and consumers find it hard to accept that we are taking less for milk when they don’t see any difference in what they are paying,” he said.
He said producer costs have continued to increase.
Because international dairy markets have been experiencing a difficult period, and returns to processors in the manufacturing sector have been under pressure, these are not valid reasons to reduce the price for liquid milk, a market where consumers are being asked to pay more,” he said.
The number of farmers in the country producing for the liquid market has fallen to 2,800. More are being forced out by falling profit margins, as it is no longer profitable for them to produce milk for 365 days of the year.
Two processors, Glanbia and Kerry, handle 70% of liquid production. Milk retail is dominated by supermarkets, with 60% of milk sales. Doorstep deliveries have dropped to 25%, and the catering trade accounts for 15%.
