Fixed-price contracts: What is plan B for dairy?

The call by some in the dairy industry to remove fixed-price contracts is short-sighted when they can be re-designed to protect farmers from milk price volatility, writes Declan O’Connor, dairy researcher at Munster Technological University

Dairy price volatility continues to be a challenge for the entire dairy supply chain.

Irish dairy farmers are living in unprecedented times, with both milk prices and input prices reaching all-time highs. While many in the industry agree that these high prices will persist in the short term (the next six months) few are willing to provide any concrete opinion on where prices may be in a year's time, let alone two to three years’ time.

This is both understandable and prudent given the current global economic and political environment. What is more certain is that prices will continue to be volatile and this will present a real risk to some farmers in particular.