Irish milk processors are challenged to keep the milk price stable in March. In this way they invest in the sector, after a lot of money has been invested in steel in recent years. That call comes from the Irish farmers' organization IFA.
“Dairy farmers today face significant challenges related to their economic sustainability,” said Tom Phelan, president of the IFA. He therefore calls on processors not to repeat the declines of February over March.
Stop the reduction
"The cooperatives are educating dairy farmers about sustainability. Now they have to make sure that sustainability is also about the economic viability of dairy farms," says Phelan. Behind the scenes there is therefore a large lobby to slow down the pace of price reductions.
The basic price for February was reduced by 1 to 3 cents per litre. Processors indicated that challenging conditions are driving the declines; for example, the market only yields a milk price of 28 to 30 cents per litre. Dairy farmers usually get prices around 33 to 34 cents per litre. Aurivo even paid an amount of 35,58 cents per litre.
Don't just invest in steel
Although the IFA does not specifically refer to 1 processor, the decision of glanbia (to lower the milk price) to create bad blood. "The decision some cooperatives make about milk prices shows how little they know about the economic challenges faced by dairy farmers." The chairman indicated that it is just as important to invest in dairy farmers as it is in steel.
Dairy farmers are now doing everything they can to get those involved to contact the processors, in order to draw attention to the concerns. "Cooperatives must halt or minimize the decline in milk prices."
Horror winter behind us
Meanwhile, dairy farming is still recovering from a horror winter. Spring also came late and the weather did not cooperate with the calving season. It doesn't stop here, because now higher costs are present, which means that the quality of grass is at a low level.
Despite the setbacks, milk production in February amounts to a plus of 2,4%. This does not alter the fact that dairy farmers need help to get through the next 3 months.
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