Farm Ireland

Wednesday 20 February 2019

Dairy farmers' anger at discount milk prices

Stock photo
Stock photo
Ciaran Moran

Ciaran Moran

Dairy farmers have hit out at unsustainable discounting of milk by Iceland and Aldi.

The Fresh Milk Producers group described the move as "socially irresponsible" and said it is putting a complete supply chain of fresh perishable food in danger of being decimated.

Group chairman Jim Mulhall, a liquid milk supplier to Glanbia from Co Kilkenny, said: "Aldi is currently selling fresh milk at €1.30 for two litres.

"This is below the true cost of putting that milk on the shelf and is not economically sustainable. Iceland is also offering a deal of four litres of milk for €2.60 litre."

Mr Mulhall said it was not enough for the supply chain to support a sustainable price to pay the primary producer.

"While retailers may claim to bear the burden of below cost selling, history has shown us the opposite will ultimately happen, with price cuts ending up on the door of the farmer," he said.

"We have seen this in other fresh food products such as vegetable sector, where these unsustainable discounting practices has resulted in unviable margins and we will not sit back and watch this happen to our product."

An Aldi spokesperson said it continues to provide the very best value groceries in Ireland.

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