The Irish Farmers' Association (IFA) has called on retailers to return an additional 7c/L to fresh milk farmers this winter, arguing that producers need a fairer share of the retail price to help offset rising input costs.
The farm organisation also urged grocers to stock dairy brands owned by farmers and encouraged consumers to look for milk carrying the National Dairy Council logo. It said producing a year-round supply of fresh milk requires extra labour and incurs substantial additional costs.
Henry Dunne, the IFA's liquid milk chair, said processors' premiums for liquid milk production had been eroded by a 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.
Pressure across the chain
The IFA's case centres on how value is distributed between farmers, processors and retailers. According to the organisation, seven milk processors handle the majority of Ireland's fresh milk and pay a premium above the standard manufacturing milk price. Five major supermarket retailers dominate the grocery market with a combined share of 94%, it said.
The organisation added that an estimated 70% of retail fresh milk sales are now private label, sold at an average discount of about 15% compared with farmer-owned brands. Private-label milk sells at a lower price than branded milk, the IFA said.
It argued that persistent pressure to cut prices had squeezed margins for fresh milk producers. The organisation said there are now 66% fewer producers than in 1995, with 1,094 remaining compared with 3,344 at that time.
Regulatory requests
The IFA has called on the National Milk Agency to ensure that fresh milk farmers are adequately compensated. It also wants the Agri-Food Regulator to bring transparency to producer, processor and retailer margins.
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 framed its request around the share of the existing retail price that reaches farmers, alongside measures aimed at supporting farmer-owned brands and giving consumers a way to identify Irish dairy milk through the National Dairy Council logo.
The statement links the call for a 7c/L return to the structure of the retail market, the level of private-label sales and the fall in producer numbers since 1995. It also directs attention to two regulators: the National Milk Agency for compensation and the Agri-Food Regulator for margin transparency.