Farmers: Hike price of milk!

IFA row as Aldi is selling two litres for just €1.30

THE Irish Farmers’ Association has slammed Aldi for cutting the price of Irish milk, which is just €1.30 for two litres in some if its stores.

Farmers say that dropping the price so low is damaging the value of Irish milk, and they are afraid that competitive pricing in stores could drive down the cost of milk to unprofitable levels.

FARMERS have rounded on Aldi for the ‘unsustainable’ and ‘aggressive discounting’ of the price of milk in the chain’s stores.

The Irish Farmers’ Association says Aldi is at present selling two litres of Irish milk for just €1.30 in some stores, which the lobby group claims is ‘below the true cost of putting that milk on the shelf’.

John Finn, chairman of the IFA national liquid milk committee, criticised the supermarket chain, which has recently became a member of a Bord Bia scheme called Origin Green.

The IFA claims that dropping the product down to such a rock-bottom price is damaging the value of Irish milk.

Mr Finn said: ‘In their promotional material advertising their membership of the Origin Green scheme, Aldi claims to have developed a plan that includes sustainable sourcing and emphasises social responsibility.

‘But any fair-minded person can see that this aggressive undermining of the value of fresh milk through hostile discounting is neither sustainable nor socially responsible.’

He said the German-owned retailer needs to reaffirm its credibility and commitment to Irish farmers by adhering to the message of Origin Green.

Mr Finn said: ‘Aldi’s behaviour will be seen by farmers for what it is: a nakedly cynical attempt to build up market share while masking their irresponsible actions behind positive PR.

‘The credibility of Origin Green depends on how much the scheme stretches its members to adopt socially responsible sourcing practices and sustainable policies and behaviours – not just environmental but also economic.’

Farmers fear competitive pricing in stores could drive down the cost of milk to unprofitable levels.

In recent days, the Irish Creamery Milk Suppliers Association criticised Glanbia Ireland for paying farmers a low price for milk produced in May, which it said is among the lowest in the industry.

A recent survey by Teagasc revealed dairy farming was the most profitable agricultural pursuit nationally, with an average income of €86,115 in 2017.

Aldi said it paid ‘a fair and sustainable price for all our products’ and that the low milk prices are only in place in a small number of stores.

It said: ‘To ensure we continue to provide the very best value groceries in Ireland, we have reduced the prices of over 50% of our product range in the past 12 months.

‘We have introduced an additional branded fresh milk line in a select number of stores which retails at €1.30 for two litres in response to local competition.

‘All of our own label milk is sourced from farms in the Republic of Ireland and is available nationally in all of our 131 stores.

‘The cost of our price reductions and amazing prices are always borne by Aldi. Aldi pays a fair and sustainable price for all our products.’

Comment – Page 12 jane.fallon.griffin@dailymail.ie

‘We pay a fair price’