The Irish Farmers' Association (IFA) has called on retailers to return an additional 7c/L to fresh milk suppliers this winter, arguing that year-round liquid milk production carries costs the current farmgate price does not cover.
The farm organisation said fresh milk farmers are facing higher costs at a time when the base milk price remains low, and that a fairer share of the existing retail price should flow back to producers.
The organisation issued the call as a warning about the position of liquid milk suppliers rather than as an announcement of agreed measures with retailers or processors.
Premiums eroded
Henry Dunne, the IFA's liquid milk chair, said processors' premiums for liquid milk production have been eroded by the considerable decline in the base milk price over the past two years. He said the organisation is seeking a fairer share of the existing retail price, framing the ask as a redistribution within current shelf prices rather than an increase in what shoppers pay.
According to the IFA, seven milk processors handle the majority of Ireland's fresh milk and pay a premium above the standard manufacturing milk price. The organisation said producing a year-round supply of fresh milk requires extra labour and incurs substantial additional costs.
Retail concentration
The IFA points to concentration in the grocery market, where five major supermarket retailers hold a combined share of 94%. It estimates that around 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, it added.
The organisation presents the shrinkage of the supplier base as evidence that price pressure is undermining the sector: it says persistent pressure to cut prices has squeezed margins to the point that there are now 66% fewer fresh milk producers (1,094) than in 1995 (3,344).
Calls to retailers and regulators
Alongside the 7c/L request, the IFA has urged grocers to stock farmer-owned dairy brands and encouraged consumers to look for milk bearing the National Dairy Council logo.
It has also called on the National Milk Agency to ensure fresh milk farmers are adequately compensated, and on 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 7c/L figure is the IFA's ask for the winter period; how such a return would be applied along the supply chain was not detailed.