Fear stalks industry over milk testing
Milk testing independent of ]the processor they sell to is one of the demands of the Co Offaly-based organisation.
In a presentation to the Joint Oireachtas Committee on Agriculture, Fisheries and Food, John Leahy of the group said farmers are refinancing their farms and houses to stay in business. “However, they are afraid to speak out because of the testing system.”
The group also demands that dairy farmers be allowed to sell to the highest paying processor.
They say there is no competition in the current system, because three months written notice must be given before a dairy farmer can move his supply.
They were aware of a few farmers who have discovered their milk is hauled to two different co-ops. “There is no competition between them and the farmer has to accept what he gets. A month later he is told what he will get for his milk. That is a very unfair process,” said Mr Leahy.
He told the committee, “A typical dairy farmer with 70 cows who produces 350,000 litres of milk loses €28,700 per annum, based on a loss of 8 cent per litre. For every hour he works, he loses €6.90. The minimum wage at €8.65 per hour amounts to €35,984 per annum, yet dairy farmers are losing €28,700 per annum.
“The dairy farmer needs 27 cent per litre of milk to break even. To earn the minimum wage, dairy farmers need to be paid 39.66 per litre.”
The group has asked that a regulator be appointed to ensure liquid milk suppliers get 50% of the retail price and manufacture milk suppliers get 40%.
Defending the efforts of Agriculture Minister Brendan Smith’s in Brussels for the dairy industry, committee member Deputy Ned O’Keeffe said the cost of milk production will be lower this year.
“I see expansion taking place, and people coming into the business at the 20 cent rate. I could name five people who were growing sugar beet, but who have changed over to producing milk.”
