Farmers take on Dunnes & Aldi
CONCERN over a possible milk price war saw the IFA leading protests outside Dunnes Stores and Aldi last week to highlight growing fears of the potential fallout of the chains’ current policies.
Farmers are concerned that the long-standing Dunnes’ market share grabbing discount of milk at 67c/l is starting to degenerate into a milk price war, which will undermine the sustainability of fresh milk producers, with Aldi joining Dunnes this week, the IFA said.
“There is no such thing as cheap milk,” IFA President Joe Healy said at the protests, which he led.
“Fresh milk producers incur high costs and legitimately expect to be able to cover their costs and make a reasonable income from their specialist milk production. Yet, experience tells us that farmers always come out the worst of these cynical grabs for market share by retailers.
“Any apparent benefit for consumers is short-lived, with the security of year-round, local supplies of milk from freshly calved cows being threatened by the erosion of margins in the chain,” Mr Healy said.
Chairman of the IFA National Liquid Milk Committee, John Finn added: “We have met with most dairies and retailers – including Dunnes Stores and Aldi - to discuss our Milk Wise 2025 Strategy to protect the sustainability of fresh milk production in the best interest of Irish consumers.
“While they asserted their commitment to sustainability of supplies in our discussions, it is clear that Dunnes’ and Aldi’s actions do not match their words. They are devaluing our milk, potentially setting off a downward spiral in prices which farmers will, as usual, end up paying for.
“I call upon Dunnes Stores, Aldi and all retailers in Ireland to desist immediately from the race to the bottom on retail milk prices,” he said.
Joe Healy added: “Instead of these short term, ill-thought out tactics, dairies and retailers should take a leaf out of their French counterparts’ book, by making a public commitment to pay an increased price within the chain that allows for farmers to make a reasonable living, cover their costs and pay themselves a modest wage.”