Three in ten consumers would pay 20c more for milk so farmers get fair price

Three in ten consumers are willing to pay an extra 20c per 2-litre of milk to ensure farmers get fair price, a new study has revealed.

The research, carried out by market research firm Mintel, also shows that one in five are willing to pay 25c or more per 2-litre of milk.

It has also found that over three in five consumers in Northern Ireland and half in the Republic do not think farmers currently receive a fair price for the milk they produce.

NI consumers

In the study, most NI consumers surveyed said they were willing to pay an extra 10-20p per 2-litres of milk so farmers would receive a fair price for their milk. Over a quarter were willing to pay 10p more per 2-litre of milk with two in five willing to pay even more.

IFA national liquid milk chair John Finn said the findings suggest a level of understanding among consumers of the economic difficulties encountered by milk producers.

According to Finn, calculations backed by analysis from Teagasc and FDC Accountants for the IFA and Fresh Milk Producers has shown that farmers would need winter payments of up to 55c/l to break even in the full 2016-2017 year.

Farmers could end up falling 12c/l below the 40c/l break even

"Without changes to either last year’s payments and premiums or the base creamery milk price, farmers could end up falling 12c/l below the 40c/l break even. This would leave a farmer with a 200,000l contract a whopping €24,000 in the red," Finn said.

He also said the study should encourage retailers and dairies to do what it takes to deliver the 40c/l annualised milk price liquid milk producers need to cover costs and pay themselves a modest wage.

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