Moves by up to four of Ireland’s supermarkets to cut the consumer price of milk risk doing serious damage to farmers who produce liquid milk, the IFA has warned.

IFA liquid milk chair Keith O’Boyle said the organisation was very concerned at the moves by Lidl, Aldi, Tesco and SuperValu to cut milk prices, with all taking 10c off their two-litre own-brand cartons.

“A price war on milk could do serious damage to those farm families who specialise in producing fresh milk rather than milk which is converted into products with a longer shelf life,” he said.

“There has been huge inflation in production costs for all farmers. However, those who specialise in fresh milk produce all year round, including over the winter months, have even higher costs. If these farmers do not get a return to cover the extra costs involved, they will change to producing milk for manufacturing.”

O’Boyle added: “The number of farmers who are committed to supplying milk all year round has significantly declined.

“While consumers might see price cuts as a positive development, it risks the medium- to long-term sustainability of fresh milk production in Ireland.”

Supermarkets Lidl and Aldi cut milk price to consumers

Milk price war risks serious damage to farmers – IFA

Production costs remain high at farm level and unless liquid milk costs are covered, farmers may switch to manufacturing milk instead.