€30K income cut for typical dairy farmer

Milk processors are warning that a typical dairy farmer could take a €30,000 income hit this year due to low milk prices.

“That will result in a cash flow crisis on many farms, particularly for new entrants and those who expanded production significantly,” said TJ Flanagan, Dairy Policy Executive with ICOS, which represents the co-operative dairies.

Mr Flanagan noted that banks are reporting only a marginally higher overdraft utilisation by farmers compared to the same period last year, and said this demonstrates the degree to which farmers are utilising co-op credit to fund their feed, fertiliser and other input purchases.