April price cut puts Irish dairy farmers on the back foot
Cuts to Irish milk prices in April a further blow to dairy farmers.
15 May 2020
1 minute read
IFA National Dairy Chairman Tom Phelan said the 1c/l April milk price cut announced early this week by both Glanbia and Lakeland was a further blow to dairy farmers on top a 2c/l and 1.8c/l cut respectively applied last month.
“It means the price to farmers is down by approximately 3c/l since March which will have a huge impact on the farmer’s margin,” he said.
In response to the price cuts, he urged other co-ops to focus their attention on cutting costs in other elements of their business.
“These cuts will have a big impact because they are cumulative and they are applying as we reach the peak production period. For a 500,000l milk supplier, assuming no further adjustment, those cuts will take up to €6,500 off their March to June milk sales.”
“Farmers need to be able to maximise their income in peak months, which coincide with the greatest demands on their cashflow, with many bills owing to the co-ops themselves due at this time of year,” he said.
“All co-ops must reconsider their profit and margin expectations for April, and come forward with ways to support farmers by redirecting their focus on costs other than milk price,” he concluded.
Read more about this story on the IFA website.
