Quota freeze hurting
Although the retail price battle still simmers in the background, there has been a 20% jump since Christmas from supermarkets' 99 cent discounted price, and the price has generally settled at €1.19 for two litres.
Farmers feared milk price cuts due to heavily discounted sales of milk partly facilitated by supermarkets buying their milk in Northern Ireland. But instead of lower prices, farmers now say processors are limiting the quota of milk they buy at the liquid price. At a meeting of Limerick IFA, Tom McGrath, a liquid milk producer from Knockainey, told the meeting that farmers trying to improve their position by increasing production were getting nowhere.
"We can't get an increase in our quota for liquid supplies, and some processors have told their producers to cut back, because the processors don't want to be paying the liquid quota price for milk. If they need additional milk, they can import it cheaper than purchasing it in the south", said Mr McGrath.
He said, "I am very concerned, we all know what has happened with the chicken industry. Supplies from Irish growers are being replaced by imports. I can see the milk going the same way as the chickens, and producers cannot survive in that situation". Liquid milk quotas will be discussed at length next week at a dairy meeting convened by IFA in Co Limerick.
