Ireland-Dairy Farming.

IRELAND-DAIRY FARMING.

Dairygold Co-op has been asked to reconsider its decision to cut the March milk price to 20c/l.

An IFA delegation met with the co-op board at its Mitchelstown headquarters last Thursday night in a bid to have what they say is a premature decision reversed.

IFA dairy chairman Richard Kennedy, who led the delegation, said Dairygold farmers were fearful of their future and that of their co-op -- the first in Munster to reach this level.

"In view of developments in recent months they were shocked and worried that Dairygold would depart from its normal price setting policy, and its proud record as a top payer to lead the milk price down in Munster," said Mr Kennedy.

He said they were assured by the chairman of the board that Dairygold was in a healthy financial condition.

Pain

However, he added they now needed to reassure their shareholders who have interpreted the price cut as a signal that all is not well.

"Dairygold Co-op must share the pain with farmers and outline a clear cost-cutting plan. They cannot rely on slashing the price of milk to deal with liquidity difficulties," he said.

Meanwhile, ICMSA president Jackie Cahill has called on the EU to either permanently subsidise the structural surplus or reduce quota to match demand.

"The structural surplus is still with us and without any supports, as in the present case, it is the cause of EU prices to producers falling in the region of 20c/l only five cent above a very depressed milk price in New Zealand.

"The alternative is to rely on volatile and uncertain world markets that might bring Irish prices above 35c/l two years out of every five" Mr Cahill said.

EU milk production for this quota year is expected to be down by almost 4pc, while US production growth will be curtailed from an expected growth rate of 2-2.5pc this year to under 1pc.

New Zealand production for this year was forecast to be 7-8pc but has since been reduced to 3pc.

- Majella O’Sullivan