92% of milk profits gone
"As the Teagasc production costs do not include the farmer’s own labour nor investment repayments, it is clear that the majority of farmers are now producing milk at a significant loss,” said IFA Deputy President Tim O’Leary yesterday.
He said farmer co-ops must focus on internal efficiencies, including greater co-operation, rationalisation and consolidation — because their farmer members can take no more cuts.
Meanwhile, more encouraging news came on the global dairy market front, with Russia signalling it is ready to lift a two-year trade embargo and welcome back milk powder imports from New Zealand.
And Fonterra has said it will lower the volumes of milk powder in its Global Dairy Trade auctions over the next year — which could continue the upward momentum after this week’s auction registered the first price rise since March.
