Future uncertain for year-round domestic liquid milk market supply

The future of an all-year-round supply for the domestic liquid milk market is now at a tipping point, according to the National Milk Agency, whose annual report for 2012 was published yesterday.

Denis Murphy, chairman, said the confidence of registered producers in the all-year-round supply model for liquid milk for the domestic market has been shattered by the costs incurred in winter milk production in 2012/13 and by the absence of any market response to these costs at that time.

“In the absence of adequate price incentives and encouragement for winter milk production for the future, many liquid milk producers are likely to switch their business models from all-year-round supplies for the domestic fresh milk market to seasonal milk supplies for export,” he said.