The Irish Farmers' Association (IFA) has urged retailers to return an additional 7c/L to fresh milk farmers this winter, saying year-round liquid milk production requires extra labour and incurs substantial additional costs while farmgate prices remain low.
The farm organisation also asked grocers to stock farmer-owned dairy brands and encouraged consumers to look for milk carrying the National Dairy Council logo. It argued that a fairer distribution of the existing retail price would help fresh milk suppliers cope with rising input costs.
Processor premiums eroded
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. "A fairer share of the existing retail price is what we are seeking," he said.
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 warned that fresh milk farmers are facing higher costs while the farmgate price for milk remains low.
Retail concentration and private label
The IFA said five major supermarket retailers dominate the grocery market, with a combined share of 94%. It estimated that 70% of retail fresh milk sales are now private label, sold at an average discount of 15% compared with farmer-owned brands. Private-label milk sells at a lower price than branded milk, it added.
The organisation linked persistent pressure to cut prices to margins for fresh milk producers. It said there are now 66% fewer producers, at 1,094, than in 1995, when there were 3,344.
Those figures frame the IFA's case as more than a request for a short-term price increase. The organisation is pointing to a structural shift in the liquid milk chain: a small number of processors and retailers control most of the market, while private-label lines account for a large share of sales and sell at a discount to branded milk. In that context, the IFA argues that the current retail price does not return enough to farmers who maintain year-round fresh milk production.
Calls to regulators
The IFA called on the National Milk Agency to ensure that fresh milk farmers are adequately compensated. It also urged 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 the 7c/L as a fairer share of the existing retail price and called on retailers and regulators to address how margins are distributed along the chain.