The price cuts of between 5c and 7c per litre announced by milk processors for January supplies have effectively eliminated the liquid milk premium paid to producers, according to Irish Farmers’ Association liquid milk chair Keith O’Boyle.

With autumn calvers at peak milk production in January, Mr O’Boyle said that milk price cuts of this magnitude “have a profound impact on our profitability and effectively wipe out our premium”.

Input costs for dairy farmers producing fresh milk through the winter months remain at an all-time high, as there is a greater dependence on the use of concentrate feed which is costing in excess of €500 per tonne at present, the IFA warned.

“We simply cannot afford to take these kinds of hits to our profit margins,” Mr O’Boyle continued.

“Without a liquid milk premium, the supply of daily fresh milk for supermarket shelves will become unsustainable.”

While milk processors continue to encourage spring milk producers to produce more milk early in the year by offering ‘seasonal’ or ‘early lactation’ bonuses, these are not available to liquid milk producers, Mr O’Boyle said.

“These bonuses must be paid to liquid milk producers with immediate effect for all the milk we produce in January, February, and March,” he added.

“Liquid milk processors cannot expect us to take cuts of 7c per litre.”

Price cuts

On Monday, Tirlán was the latest processor to confirm its base milk price for January supplies of 45c per litre (including Vat), a decrease of 6c per litre.

Late last week, Carbery announced that it has reduced its milk price for January supplies by 4c per litre.

Dairygold has also reduced its quoted milk price by 6c per litre to 52c per litre.

Meanwhile, Lakeland Dairies was the first processor to announce a 6c cut to milk price for January supplies.

Also, the Kerry Group base price for January milk is 50c per litre, a drop from the base price of 56c per litre for December milk supplies.