The Irish Creamery Milk Suppliers Association (ICMSA) has warned that consumers will soon have to pay higher prices for milk and other dairy produce in retail outlets.
"Wages, arising from the PPF and other factors since January 2000, have increased by over 20 per cent according to the ESRI," said Mr. Jackie Cahill, Deputy President of ICMSA. "Yet the price we are being paid for our milk has remained static at best and is falling in recent times."
In March, the price of milk fell to 27.8 cent per litre, the equivalent of 99.5 per gallon and below the £1 per gallon, seen as the benchmark for the dairy industry.
"Farmers cannot be expected to accept lower prices and thus income while other sectors have increasing incomes. Farmers are being bombarded with increased costs at this time due to inflationary pressures in the areas of labour, fuel and farm inputs," said Mr Cahill.
"Wage increases have outstripped productivity and therefore prices will have to increase. It cannot be the case that costs can increase without that cost being transferred to the consumer," he continued.
"In the past decade, the price paid to farmers has fallen significantly in real terms. This is unsustainable and cannot be allowed to continue. The PPF commitment to increase farm income in line with other sectors in the economy will have to be realised," concluded Mr. Cahill.
Meanwhile, Mr John Dillon, President of the Irish Farmers Association, believes it is critical for the Minister for Agriculture, Mr Joe Walsh, to secure substantial increases in export refunds in Brussels before more damage is done to dairy farmers.
He called on co-ops to cut overhead costs rather than seek milk price cuts at what he sees as a difficult period in international dairy markets.
Mr Dillon cites rapid expansion in production in countries such as New Zealand for the severe downturn in world dairy markets. "The EU Budget is in surplus to provide export refunds and a substantial increase is the only way to counteract the collapse in world dairy markets and secure stability for Irish dairy farmers," he concluded.