The Association’s comments follow an announcement by several supermarkets that it is to reduce the shelf price of its milk products.
Since the beginning of the war in Ukraine milk prices in supermarkets rose by 24% year on year according to recent figures from the Central Statistics Office.
However consumers will notice a price fall this weekend after Lidl Ireland announced cuts of 10 cent on a two litre of milk from this morning with other milk products also dropping.
That was quickly followed by Tesco Ireland who announced a similar price cut from Sunday and by Aldi who said their cuts would commence on Tuesday.
Natasha Adams, CEO of Tesco Ireland, said: “With household budgets under increasing pressure, we are absolutely committed to helping our customers, by keeping a laser focus on the cost of the weekly shop”.
SuperValu said last night that the retail price of their 2 litre own brand fresh and low-fat milk will reduce by 10 cent from €2.29 to €2.19 from today.
While it is very good news for consumers, dairy farmers who specialise in producing fresh milk for the table, expressed deep concern.
Keith O’Boyle of the IFA said production costs are up hugely and a price war could do untold damage to producers at this point and risk the sustainability of fresh milk production in Ireland.
“There is real concern that a price war on milk could do untold damage to the farm families who specialise in producing fresh milk rather than milk which is manufactured into products with a longer shelf life,” Mr O’Boyle said.
“There has been huge inflation in production costs for all farmers.
“However, those who specialise in fresh milk produce all year round, including over the winter months, have even higher costs.
“If these farmers don’t get a return to cover the extra costs involved, they will change to producing milk for manufacturing.
“The number of farmers committing to supplying milk all year round has significantly declined.
“While consumers might see price cuts as a positive development it risks the medium to long term sustainability of fresh milk production in Ireland.”
