Production cost may hit milk supply
The National Milk Agency said it wishes to make all parties with an interest in the domestic fresh milk sector — consumers, retailers, processors, and distributors — aware of the exceptional additional production costs, and of the necessity of maintaining the confidence of specialist producers in winter milk production.
The NMA is concerned that some of these specialist milk producers may, due to the impact of 2012 feed cost increases, decide to cease producing milk in the winter period and thereby reduce the future availability of all-year-round domestic supplies of milk for liquid consumption.
Concern was expressed that higher production costs are making winter milk production unviable and unsustainable.
The NMA commissioned a report from Teagasc liquid milk specialist Joe Patton on the increased costs.
He concluded that specialist producers of milk for liquid consumption on the domestic market will incur additional feed costs in excess of four cent per litre from Oct 2012 to Feb 2013.
The wet summer reduced the volume and quality of on-farm forage production, leading to a raised requirement for supplementary protein feeds, the prices of which have risen substantially since 2011, particularly affecting winter milk the production by 1,900 specialist farmers.
