Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Shutterstock/Alphonse Mc Clouds

Farmers struggling to pay bills, call on retailers to increase price of milk

The IFA has said the low prices offered in some shops are “unsustainable”.

FARMERS HAVE CALLED on retailers to increase the price of milk, saying the low prices offered in some shops are “unsustainable”.

Farmers are facing a “massive increase” in feed costs caused by the impact of bad weather on fodder supplies, the Irish Farmers’ Association (IFA) has said.

IFA National Liquid Milk Chairman John Finn has criticised retailers for “showing no solidarity with farmers” during an “unprecedented fodder crisis”.

Finn called on retailers and co-op-owned fresh milk processing dairies to “ensure that their sourcing of milk is sustainable, not just from an environmental perspective, but also from an economic and social point of view”.

Struggling to pay bills 

Teagasc recently stated that as a result of the weather-related fodder crisis of 2017 and 2018 – which will cause severe shortages for next winter – dairy farmers would this year spend about 75% more on feeding their cows.

“This is certain to be far greater for liquid milk producers who need to keep their cows productive through the winter,” Finn said.

The fact is, most farmers do not have that sort of cash flow availability, especially at a time of high family, back to school/college financial demands.

“Farmers who normally pay their bills over the summer months using the cash flow from their milk cheques will have spent it all on securing fodder and feed to keep their cows healthy and the milk flowing for processors and consumers,” he added.

Meeting with retailers 

Representatives from the IFA have already met with Iceland, Aldi and Tesco, and are due to meet with the other retailers in the coming weeks.

Finn said apart from Iceland introducing an additional 2c per litre payment for suppliers, a cost that is absorbed by the company and not passed on to consumers, retailers have “shown no solidarity with farmers”.

A spokesperson for Iceland said the company was “recognising the needs of farmers and also living up to its commitment to sustainable business practices that bring great value to customers and fair prices to our supply partners”.

“It is disappointing that other retailers have not followed our lead,” they added.

A spokesperson for Tesco said the company doesn’t source milk directly from farmers but through milk processors who agree prices with their milk producers.

“The market is highly competitive and we work hard to ensure we can offer our customers the best possible value,” they said.

Aldi had not replied to a request for comment at the time of publication.

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Close
62 Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment
    Install the app to use these features.
    Mute Tony Gordon
    Favourite Tony Gordon
    Report
    Sep 16th 2018, 7:15 AM

    I don’t think 10c on a bottle if milk would break the bank of most households! (It’s not like the average consumer uses 100s of liters a week!)

    We should be supporting our milk industry at this time.

    609
    Install the app to use these features.
    Mute Shane O'Neill
    Favourite Shane O'Neill
    Report
    Sep 16th 2018, 7:23 AM

    @Tony Gordon: incredibly tough year. retailers/coops need to be supportive and pass price on or we will end all drinking UHT

    221
    Install the app to use these features.
    Mute Hellenize Dublin
    Favourite Hellenize Dublin
    Report
    Sep 16th 2018, 8:04 AM

    @Tony Gordon: call me ill informed and ignorant, but how is membership of the Common Agricultural Policy affecting this?

    I’m all for supporting Irish produce but what of all the milk that goes to waste? Hard to justify support with such atrophy.

    86
    See 9 more replies ▾
    Install the app to use these features.
    Mute John Considine
    Favourite John Considine
    Report
    Sep 16th 2018, 8:41 AM

    @Tony Gordon: must be a while since you went for the milk… bottle?

    18
    Install the app to use these features.
    Mute Tony Gordon
    Favourite Tony Gordon
    Report
    Sep 16th 2018, 8:43 AM

    @Hellenize Dublin: you tell me, I know little about CAP, but just don’t see the issue with a modest increase in the price of milk to support an industry that are about to endure a huge increase in production cost.

    35
    Install the app to use these features.
    Mute Tony Gordon
    Favourite Tony Gordon
    Report
    Sep 16th 2018, 8:45 AM

    @John Considine: are plastic bottles not still bottles? Or how would you describe the plastic containers?

    17
    Install the app to use these features.
    Mute John Considine
    Favourite John Considine
    Report
    Sep 16th 2018, 9:49 AM

    @Tony Gordon: tetrapaks…

    7
    Install the app to use these features.
    Mute Pat Patovic
    Favourite Pat Patovic
    Report
    Sep 16th 2018, 10:18 AM

    @John Considine: you need to broaden your horizonts People do learn all of their life if they want to. You needs to learn that tetrapak is plastic lined carton packaging. And that milk is sold in tetrapak and also plastic bottles. Some milk farms do sell milk also in glass bottles.

    15
    Install the app to use these features.
    Mute Bhiniáimin Ó Beith
    Favourite Bhiniáimin Ó Beith
    Report
    Sep 16th 2018, 10:48 AM

    @Tony Gordon: Totally agree milk really isn’t that expensive I mean average is only 2.20 for 3 litres. You’d spend more than that on fizzy drinks sure. The retailers are the ones forcing it on the producers when they should be paying a fair price.

    25
    Install the app to use these features.
    Mute John Judd
    Favourite John Judd
    Report
    Sep 16th 2018, 11:10 AM

    @Tony Gordon: 10 cent tax would make sense, if the price is low that would indicate an oversupply the price of any product is determined by supply/demand perhaps struggling dairy farmers should look at products that yield a higher price and products that are healthier for humans.

    11
    Install the app to use these features.
    Mute Don Smith
    Favourite Don Smith
    Report
    Sep 16th 2018, 11:39 AM

    Completely disagree. The reason is because the big supermarkets want big profits so supermarkets pay the farmers less than 1/4 of the price they sell to customers. Supermarkets should take hit on huge profits not customer.

    34
    Install the app to use these features.
    Mute Hardly Normal
    Favourite Hardly Normal
    Report
    Sep 16th 2018, 1:06 PM

    @Tony Gordon: I agree to an extent but is this just another way of saying nut milk is eating into our profits? People are drinking less of it so they should probably produce less and they wouldn’t have the as much of an outlay. How many cartons of milk are thrown out every week from supermarkets? I

    4
    Install the app to use these features.
    Mute RJ
    Favourite RJ
    Report
    Sep 16th 2018, 7:20 AM

    Perhaps dont upgrade the john deer or new holland next year, or keep the land cruiser a bit longer, help pay bills and take home a bit more…

    301
    Install the app to use these features.
    Mute ianglen
    Favourite ianglen
    Report
    Sep 16th 2018, 7:31 AM

    @RJ: Usually it’s the Contractors who upgrade their machinery, their insurance bills are eye watering as well which they pass on to farmers in higher bills for doing work.

    113
    Install the app to use these features.
    Mute Barry Somers
    Favourite Barry Somers
    Report
    Sep 16th 2018, 7:54 AM

    @RJ: if you think all farmers are doing this then you haven’t a clue.

    Farmers aren’t the idiots upgrading a tractor each year like non farmers do with cars

    176
    See 5 more replies ▾
    Install the app to use these features.
    Mute RJ
    Favourite RJ
    Report
    Sep 16th 2018, 8:41 AM

    @RJ: I’m a farmer and an accountant. I know how it works. Farmers have two choices when it comes to running a farm.

    23
    Install the app to use these features.
    Mute Dan
    Favourite Dan
    Report
    Sep 16th 2018, 8:42 AM

    @Barry Somers: don’t do a them against us thing. 99.99 percent of non farmers don’t buy a new car every year. Also a massive percentage of them have Never buy a new car as they can’t afford it….

    42
    Install the app to use these features.
    Mute Dan
    Favourite Dan
    Report
    Sep 16th 2018, 8:44 AM

    *bought a new car

    4
    Install the app to use these features.
    Mute Patabake Kennedy
    Favourite Patabake Kennedy
    Report
    Sep 16th 2018, 10:30 AM

    @RJ: Also stop wasting fuel by driving up and down past the neighbors in order to give the impression that they are the are so busy that they haven’t a minute to spare.

    14
    Install the app to use these features.
    Mute selfsustainable
    Favourite selfsustainable
    Report
    Sep 16th 2018, 6:39 PM

    @Patabake Kennedy: well it appears you’ve a lot of time on your hands if you spend your days looking out the window at the cool tractors driving by….;)

    1
    Install the app to use these features.
    Mute John Considine
    Favourite John Considine
    Report
    Sep 16th 2018, 8:54 AM

    Once upon a time farmers ran co-ops, and they controlled the price they sold milk for and the price they got for it as suppliers. Then they sold all their shares to PLCs and got big money for them, as well as share dividends every year, money for doing nothing. The PLCs behave just like every other company, their focus is on earnings per share. If earnings per share are to be high, price paid to suppliers has to be low. Efficient professional dairy farmers can work with this, inefficient ones can’t. Blame yourselves for selling out the co-ops, that’s where the loss of control started. Console yourselves when the share dividend arrives.

    156
    Install the app to use these features.
    Mute Mick Barnier
    Favourite Mick Barnier
    Report
    Sep 16th 2018, 7:32 AM

    The IFA meet with the supermarkets and beg for higher prices.
    The supermarkets meet with the co-ops and demand lower prices.
    The supermarket controls the industry and the farmer loses.

    141
    Install the app to use these features.
    Mute emul8ter25
    Favourite emul8ter25
    Report
    Sep 16th 2018, 7:35 AM

    @Mick Barnier: consumers control the market with their wallets.

    51
    Install the app to use these features.
    Mute Liam Lally
    Favourite Liam Lally
    Report
    Sep 16th 2018, 8:12 AM

    The retail price of Milk should be increased by at least 20% as should Mushrooms.
    Farmers are the backbone on this country.Most of us either live on a farm or can trace our family back to living on a farm.

    108
    Install the app to use these features.
    Mute Tony Gordon
    Favourite Tony Gordon
    Report
    Sep 16th 2018, 8:40 AM

    @Liam Lally: I don’t agree with ‘farmers are the backbone of the country’ while they are an important part of our economy, and should be looked after, all aspects of our economy are as important.

    If the general population didn’t have income, we wouldn’t be buying (as much) produce.

    103
    Install the app to use these features.
    Mute Brendan Hughes
    Favourite Brendan Hughes
    Report
    Sep 16th 2018, 9:32 AM

    @Liam Lally: mushrooms should be a tenner each. To stop them being used as filler in dishes they have no bussiness bing in. Hate the damn things.

    70
    See 1 more reply ▾
    Install the app to use these features.
    Mute An bhearna
    Favourite An bhearna
    Report
    Sep 16th 2018, 12:10 PM

    @Liam Lally: No they’re not.
    The agri-food sector in Ireland in 2016 generated 7% of gross value added (€13.9 billion), 9.8% of Ireland’s merchandise exports and provided 8.5% of national employment. When employment in inputs, processing and marketing is included, the agri-food sector accounts for almost 10% of employment. Teagasc.ie

    5
    Install the app to use these features.
    Mute Shane Power
    Favourite Shane Power
    Report
    Sep 16th 2018, 9:28 AM

    While I feel sorry for farmers, they want all the benefits of an open market, but none of the pitfalls. Like any other business they most find a way to compete and diversify. This is consumerism, the same rules apply to any other business/sector

    74
    Install the app to use these features.
    Mute Joseph Dempsey
    Favourite Joseph Dempsey
    Report
    Sep 16th 2018, 9:12 AM

    I’m struck watching the preparations for the ploughing championships next week (I live near it), someone in agriculture is making money, perhaps not all farmers but the money ploughed (excuse the pun) into to this event is staggering. I spoke to one exhibitor whose company forks out €45k for a stand, the organisers even had the neck to ask for €600 extra for broadband access for the 3 days. I’m also curious that local councils can suddenly find a few Bob to patch up roads and also wondered who’s paying for the massive Garda team. I have noticed one thing new though, barely an advertising banner along the route to it this year, last year it not a spare inch free for up to 4miles leading up to the site. I suspect it’s cost is getting a little rich for some.

    77
    Install the app to use these features.
    Mute Martin Sinnott
    Favourite Martin Sinnott
    Report
    Sep 16th 2018, 7:31 AM

    Why we we import so much yogurt ???

    68
    Install the app to use these features.
    Mute Bart Teeling
    Favourite Bart Teeling
    Report
    Sep 16th 2018, 8:43 AM

    So it’s ok for governments to intervene in farming but not housing?

    59
    Install the app to use these features.
    Mute Iarla Ó
    Favourite Iarla Ó
    Report
    Sep 16th 2018, 8:41 AM

    Whether it’s for health reasons or for environmental reasons, with options like rice milk so easily available in the shops dairy milk isn’t as important or necessary as it used to be.

    57
    Install the app to use these features.
    Mute Seán J. Troy
    Favourite Seán J. Troy
    Report
    Sep 16th 2018, 11:41 AM

    The farmers never cease to irritate me.

    Was it a hard year? Yes. But a lot of that was down to over expansion of herds after the quotas ended which reduced the amount of spare land for fodder.

    That also vastly increased the production of milk and dropped the price.

    Farmers did nothing but complain about the quotas but once they were lifted they gave themselves absolutely no room to deal with a shock and this is the result.

    49
    Install the app to use these features.
    Mute Sean Conway
    Favourite Sean Conway
    Report
    Sep 16th 2018, 11:26 AM

    Free collage education for their kids. and subsidised to the hilt. farmers are never happy.

    59
    Install the app to use these features.
    Mute Pounamustone
    Favourite Pounamustone
    Report
    Sep 16th 2018, 9:29 AM

    We should be reducing all aspects of animal agriculture in this country so that we can achieve the environmental targets we’ve committed to. It’s the single most distructive industry when it comes to polluting the environment, it’s produce , including milk, is proven by many independent studies to be highly damaging to our health so why should we do anything to encourage it.

    41
    Install the app to use these features.
    Mute Angie McKelvey
    Favourite Angie McKelvey
    Report
    Sep 16th 2018, 10:33 AM

    @Pounamustone: I bet your great craic!!!

    31
    Install the app to use these features.
    Mute Noel Tate
    Favourite Noel Tate
    Report
    Sep 16th 2018, 2:49 PM

    @Pounamustone: t

    1
    See 1 more reply ▾
    Install the app to use these features.
    Mute Noel Tate
    Favourite Noel Tate
    Report
    Sep 16th 2018, 2:51 PM

    @Pounamustone: that’s a bit of a blanket statement and if I’m thinking of the same studies you are misrepresenting/misunderstanding the results. The health benefits of small amounts of dairy far outweighs any negative impact.

    3
    Install the app to use these features.
    Mute Bernadette Furlong
    Favourite Bernadette Furlong
    Report
    Sep 16th 2018, 11:30 AM

    Why does the tax payer have to pay for everything

    30
    Install the app to use these features.
    Mute Charles McCarthy
    Favourite Charles McCarthy
    Report
    Sep 18th 2018, 11:24 AM

    @Bernadette Furlong: Tax payers can be both consumers and producers.

    1
    Install the app to use these features.
    Mute Conor Brady
    Favourite Conor Brady
    Report
    Sep 16th 2018, 10:07 AM

    Can someone tell me why we should care more about milk producers than any other small Irish business? For reasons of quality and environment, I’m all for Irish produce and wish we have the balls to enforce an Irish only type drive on the market (though they would buck against the higher prices) as the Swiss do, but in the meantime if someone makes my product better / cheaper / smarter than me then my business closes. No help for us and together me provide far more jobs. Is it just a lobby thing?

    42
    Install the app to use these features.
    Mute Richard Casey
    Favourite Richard Casey
    Report
    Sep 16th 2018, 9:31 AM

    The problem is the middleman, the so called co-Ops, Glanbia and Dairy Gold etc who decide how much they will pay. Get rid of this step and then farmers and retailers can define fair pricing.

    18
    Install the app to use these features.
    Mute Daniel Donovan
    Favourite Daniel Donovan
    Report
    Sep 16th 2018, 11:57 AM

    The free markets decide a fair price. The government should not intervene.

    12
    Install the app to use these features.
    Mute Ike Quirk
    Favourite Ike Quirk
    Report
    Sep 16th 2018, 9:41 AM

    Grain and beef and sheep and pig farmers have bee having this particular struggle for 25 years

    14
    Install the app to use these features.
    Mute sinéad
    Favourite sinéad
    Report
    Sep 16th 2018, 9:52 AM

    Put the milk prices through the roof sure, get people to buy the alternatives

    9
    Install the app to use these features.
    Mute Richard Casey
    Favourite Richard Casey
    Report
    Sep 16th 2018, 9:30 AM

    The problem is the middleman, the so called co-Ops, Glanbia and Dairy Golds who decide how much they will pay. Get rid of this step and then farmers and retailers can define fair pricing.

    10
    Install the app to use these features.
    Mute Brian harris
    Favourite Brian harris
    Report
    Sep 16th 2018, 9:53 AM

    @Richard Casey: No. The problem is the farmer. Stop whinging and sell a bit of your land. Im sick of hearing farmers bleating. Stop supporting your buddies in FG , then things might change. At the end of the day everybody has to eat.

    36
    Install the app to use these features.
    Mute Katie Wrest
    Favourite Katie Wrest
    Report
    Sep 16th 2018, 10:18 AM

    @Brian harris: sell a bit of land? You mean the land they use to make a living off? You really have no idea where your food comes from, or how it’s produced, do you?

    46
    See 1 more reply ▾
    Install the app to use these features.
    Mute Brian harris
    Favourite Brian harris
    Report
    Sep 17th 2018, 12:15 AM

    @Katie Wrest: Wrong.

    1
    Install the app to use these features.
    Mute Richard Casey
    Favourite Richard Casey
    Report
    Sep 16th 2018, 9:29 AM

    The problem is the middleman, the Glanbia’s and Dairy Golds who decide how much they will pay. Get rid of this step and then farmers and retailers can define fair pricing.

    8
    Install the app to use these features.
    Mute Kieran Woods
    Favourite Kieran Woods
    Report
    Sep 17th 2018, 5:08 PM

    @Richard Casey: The farmers sold out the co-op system for quick money. Now they want it back. Also milk production is being ramped up since the quotas were relaxed with no effort to find new markets. Its the opposite to what most industries do- develop the markets first, increase production to meet that market.

    1
    Install the app to use these features.
    Mute Costello Trevor
    Favourite Costello Trevor
    Report
    Sep 16th 2018, 11:50 AM

    Milk is good for you ..and great for baby calf’s..

    7
    Install the app to use these features.
    Mute Sean Considine
    Favourite Sean Considine
    Report
    Sep 16th 2018, 2:45 PM

    Farmers are over stocked simple as that
    Cut back on stock and stop moaning

    8
    Install the app to use these features.
    Mute Seriously stunned
    Favourite Seriously stunned
    Report
    Sep 16th 2018, 3:12 PM

    @Sean Considine: but Sean they love to moan.they can’t help themselves.

    6
    Install the app to use these features.
    Mute Costello Trevor
    Favourite Costello Trevor
    Report
    Sep 16th 2018, 11:52 AM

    Milk is good for and excellent for the growth of baby calf’s… drink milk

    4
    Install the app to use these features.
    Mute Costello Trevor
    Favourite Costello Trevor
    Report
    Sep 16th 2018, 11:50 AM

    Milk is good for you ..and great for baby calf’s..

    4
    Install the app to use these features.
    Mute Joe Clery
    Favourite Joe Clery
    Report
    Sep 16th 2018, 10:21 PM

    The market appears to be working.. However beware, the market does not give two hoots about the farmers livelihoods or urban/rural dwellers food supply etc. It wont also give two hoots when large amounts of jobs are automated out of existence, in post office, shops, takeaways, professional, educational and medical services.

    So maybe its time to start examining what the market is doing and how we can be better served by it.

    1
    Install the app to use these features.
    Mute Richard Casey
    Favourite Richard Casey
    Report
    Sep 16th 2018, 2:07 PM

    The problem is the middlemen, the co-ops like Dairy Gold, Glanbia etc who define the price they will pay, need to eliminate these people between the end user and the farmers.

    1
    Install the app to use these features.
    Mute Gavin
    Favourite Gavin
    Report
    Sep 17th 2018, 10:35 AM

    Farmers with the poor mouth again. Majority of farmers are well off. Grants and subsidies and they are still giving out.

    1
    Install the app to use these features.
    Mute Tim O'Connell
    Favourite Tim O'Connell
    Report
    Sep 17th 2018, 7:55 AM

    Farmer co-op shareholders sold out to the big operators when the money was dangled in front of them. Now it has come back to bite them on the ass.

    1
    Install the app to use these features.
    Mute Albert Brennerman
    Favourite Albert Brennerman
    Report
    Sep 16th 2018, 6:15 PM

    Supermarkets so juxtaposed to rural Ireland. I would love see small rural grocers & post offices return backed by IFA and government. Still a few groceries/bars left and they were an old solution to rural isolation.

    Everything now has a capitalist driver and it maybe whats financially best, but not socially best. Entire streets that existed in towns providing a social structure and a service function are no in Aisle 4 and 5. I know of one farmer where they agreed a price with on harvest returned to state they wouldn’t pay him half of what he agreed.Its ruthless.

    This capitalist driver is a ruthless operator and its coming into every segment of society if its housing, healthcare,schools, how cheap can we do it or how high can we charge. It has no compassion or humanity, it purely operates on the financial and people are rewarded well for operating it like this. Look at the tax regime that have been brought in across all countries to greater or less extent the state are funded now by overtaxed workers, wealthy people shelter their earnings legally avoiding contributions and our media are then in the latter bracket.

    We are in it and our kids will be in it like no other generation. We need to really think different, things that are important to us shouldn’t have bottom lines. Fund small local purpose shops and sell direct to customer, with online order and pickup, tax at 12.5%.

    1
    Install the app to use these features.
    Mute Shawn O'Ceallaghan
    Favourite Shawn O'Ceallaghan
    Report
    Sep 17th 2018, 6:49 AM

    Is this not price fixing?

    1
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.

Leave a commentcancel

 
JournalTv
News in 60 seconds