Warning over all-year-round supplies of milk after liquid producers get lowest ever price premium

All-year-round suppliers of milk for liquid consumption were paid only 1.74 c/litre more than manufacturing milk suppliers in 2011, the lowest premium on record — which has prompted National Milk Agency chairman Denis Murphy to warn that continued availability of all-year-round milk supplies from registered producers cannot be assured.

He confirmed industry fears that rising costs of winter milk production and the growing attraction of a seasonal milk supply model in a post-EU milk quota environment could lead to loss of some of the 1,790 year-round milk supply contracts, and 160 winter contracts, through which Ireland’s 578 million litres of fresh liquid milk consumption is supplied.

In 2011, consumption increased by 2%; the per capita consumption in Ireland of 0.35 litres per day is the highest in the EU.