IFA hosts liquid milk rally
Mr Healy advised farmers attending the IFA liquid milk rally in Portlaoise to further tighten their winter supplies to their liquid milk contracts, and remove the comfort for dairies and retailers that has contributed to systematic undercutting and erosion of value in the liquid milk chain.
“There is clear evidence farmers have been scaling back their autumn calving dramatically in the last two years — by 16% and 12.4% respectively,” said Mr Healy.
“The industry and retail trade must wake up and respond, or risk running short of locally produced, quality fresh milk in winter.”
Liquid milk producers maintain production in the winter months to ensure a year-round supply of Irish milk in Irish retail outlets.
Mr Healy said the sector is worth more than €400m at retail level, which is 13% of the value of our total dairy exports — a vital contributor to the dairy sector, with a stable return from the retail trade.
The IFA wants Agriculture Minister Michael Creed to preside over a dairy assembly with all industry stakeholders.
The IFA’s goals include bringing an end to one-year retail tenders, a full review of farmers’ contracts, and a study of the 1,900 farmers involved in liquid milk to establish their age profile and succession plans and an independent well-resourced Ombudsman to oversee fair trading in the food chain.
IFA national liquid milk chairman John Finn added: “We are frustrated, as farmers, to be struggling every year a little more to secure winter payments that reflect both the high and stable returns from retail milk, and which allow us to cover our costs.
“We haven’t been able to do this in the last three years at least, and especially last winter. Dairies must engage for 2016/17, and beyond, and ensure farmers are paid a price that justifies their continuation in the specialist liquid milk production system.”
