The January milk price cuts announced by co-ops so far are a “huge morale hit” for dairy farmers, particularly at a busy time of year when they are “working 24/7”, says Irish Creamery Milk Suppliers Association (ICMSA) president Pat McCormack.
The ICMSA president said he is “disappointed that milk processors have been so harsh with price cuts given the strong balance sheets they’ve had”.
“I would have expected maybe a 2c, 3c, maybe even 4c drop, but not to the level they’ve gone with it,” he said.
McCormack was speaking after processors Lakeland Dairies and Kerry Group each announced a near-6c/l milk price drop for January supplies on Monday.
Kerry Group has announced that it will pay farmers 47.61c/l, excluding VAT, for all January milk supplied at 3.3% protein and 3.6% fat.
This is a 5.47c/l reduction on the price for December supplies when the co-op paid its farmers 53.08c/l, excluding VAT. It is the first time Kerry’s milk price has changed since July 2022.
Elsewhere, Lakeland Dairies reduced its milk price for January supplies to 50.33c/l excluding VAT at 3.6% butterfat and 3.3% protein.
The price represents a 10% or 5.45c/l drop off the 55.78c/l excluding VAT the processor paid farmers for their December milk.
IFA
Irish Farmers’ Association (IFA) dairy committee chair Stephen Arthur shared McCormack’s views on the milk price cuts.
“I am disappointed with the level of shock [milk price] reduction. It’s a very strong hit for this time of year, a busy time of year,” he said.
Adding milk price concerns to the pressures of banding and nitrates, Arthur said he is “seriously concerned where dairy is going to be this year”.
He said many dairy farmers who had a good year in 2022 were just able to zero their co-op and contractor bills, but that now they will be back in the red.
“I think dairy farming is in a serious quandary at the moment. This is going to hit them extremely hard,” he said.
