Milk prices fell by three per cent according to figures

MILK prices fell by more than three per cent in July according to the latest figures released by the Central Statistics Office.

The figures show that Irish milk production fell almost 27m litres in July 2018 compared to July 2017, a fall of 3.1 per cent.

Gerald Quain, Chairperson of ICMSA’s Dairy Committee, has said that the latest milk production figures for July ‘underline graphically’ the effect the drought conditions had on dairy farms this summer.

Mr Quain said that Irish milk production fell almost 27m litres in July 2018 compared to July 2017, and reflects the immediate ‘ knock-ons’ of the extreme weather and challenges around adequate feed and grass over the period.

Mr Quain said it is imperative that the fall in supply must have a positive impact on prices as the extent of the fall in milk produced works its way through the chain.

‘Prices on European wholesale markets have increased over the last number of weeks with returns for the Butter/SMP mix running at almost 35cpl and WMP over 32cpl.

‘ The fact for farmers is that revenues are being eaten-up by the increased costs associated with the drought and fodder challenges but that doesn’t detract from the imperative of getting the highest prices possible from the marketplace back to farmers as they struggle with those increased costs for the remainder of 2018 and into 2019.’ THE Government and financial institutions came in for stinging criticism from the IFA last week.

Speaking to the National Council President of the IFA Joe Healy was highly critical of Minister for Agriculture, Michael Creed, and his failure to introduce low cost loans.

‘While the Minister has introduced a number of measures farmers cannot understand how the low-cost loans have yet to be introduced. This was announced in the Budget almost 12 months ago, yet it has not happened, The need for the loans was never greater given the financial impact of the weather since last Spring.’

Mr Healy said that all the main banks will have to display much more flexibility to support their farmer customers out beyond this winter and into next year.

‘ The cost of borrowing is simply too high for farmers who have suffered a number of ham- mer blows this year. We expect the Oireachtas Committee on Agriculture to raise this with the banks also.’

He also said that the IFA hoped to see Minister Creed implement a number of suggestions they had made in advance of Budget 2019.

‘ The underlying incomes issue has been exacerbated by the extreme conditions. Farm families who are struggling will be looking to the Budget to provide them with support.’