Milk price wars could damage Irish dairy farmers, IFA warns

The Irish Farmers’ Association (IFA) has warned that a supermarket price war over milk could do “serious damage” to producers.

The intervention came after four supermarkets announced milk price cuts in quick succession on Friday night after discount retailer Lidl became the first to reduce the price of a litre since the beginning of the cost-of-living crisis 18 months ago.

Keith O’Boyle, the IFA’s liquid milk chairman, said fresh milk producers could be pressed into creating long-life products if they are not seeing a return that covers their higher costs.

“A price war on milk could do serious damage to those farm families who specialise in producing fresh milk rather than milk which is converted into products with a longer shelf life,” he said in a statement.

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“There has been huge inflation in production costs for all farmers. However, those who specialise in fresh milk produce all year round, including over the winter months, have even higher costs. If these farmers do not get a return to cover the extra costs involved, they will change to producing milk for manufacturing”.

“The number of farmers who are committed to supplying milk all year round has significantly declined. While consumers might see price cuts as a positive development, it risks the medium to long term sustainability of fresh milk production in Ireland.”

Tesco, Aldi, SuperValu and Lidl have all announced a reduction in the price of milk.

In the Autumn of 2021 a litre of full fat own-brand milk in Irish supermarkets cost 75 cent. Today and before the price cut from Lidl, a litre of milk is priced at €1.15.

Lidl’s cut sees the price of a litre fall to €1.09, with the other retailers applying similar reductions.