Production cost may hit milk supply

The statutory body which regulates the supply of milk for liquid consumption has sounded the alarm over the sharp rise in production costs which, it says, threatens the availability of winter supplies of fresh drinking milk.

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.