The Irish Farmers' Association (IFA) has called on retailers to return an extra 7c/L to fresh milk farmers this winter, arguing that year-round liquid milk production requires extra labour and incurs substantial additional costs while the farmgate price remains low. The farm organisation also urged grocers to stock farmer-owned dairy brands and encouraged consumers to look for milk bearing the National Dairy Council logo.
Henry Dunne, the IFA's liquid milk chair, said processors' premiums for liquid milk production had been eroded by the considerable decline in the base milk price over the past two years. He said the organisation was seeking a fairer share of the existing retail price for fresh milk farmers. The IFA warned that fresh milk farmers are facing higher costs at a time when the farmgate price for milk remains low.
According to the IFA, seven milk processors handle the majority of Ireland's fresh milk and pay a premium above the standard manufacturing milk price. The organisation said five major supermarket retailers dominate the grocery market, with a combined share of 94%. It added that an estimated 70% of retail fresh milk sales are now private label, sold at an estimated average discount of 15% compared with farmer-owned brands. Private-label milk sells at a lower price than branded milk, the IFA said.
The IFA said persistent pressure to cut prices had squeezed margins for fresh milk producers to the point that there are now 66% fewer producers than in 1995. It put the current number of producers at 1,094, compared with 3,344 in 1995. The organisation is calling on the National Milk Agency to ensure that fresh milk farmers are adequately compensated, and on the Agri-Food Regulator to bring transparency to producer, processor and retailer margins.
The IFA's statement distinguishes between the standard manufacturing milk price and the premium paid for liquid milk, noting that the liquid milk premium has narrowed as the base price fell. It also highlights the role of private-label products in the retail mix, where lower-priced own-brand milk sits alongside farmer-owned brands.
The National Milk Agency was established under the Milk (Regulation of Supply) Act 1994 to regulate the supply of milk for liquid consumption throughout the state. The IFA's intervention places the structure of the fresh milk supply chain, and the division of retail returns among processors, retailers and farmers, at the centre of its winter campaigning.