Milk chiefs reject fears over drop in supplies
Dairy industry sources have dismissed fears that falling milk supplies could undermine the Irish processing sector.
Department of Agriculture officials are expected to confirm that Ireland fell short of quota by a massive 10pc during the 2009/2010 quota year.
Concern had been expressed by secondary processors about the supply integrity of dairy ingredients as milk supplies continue to slump.
Milk supplies for the quota year just ended are expected to total around 4.76bn litres. This is around 340m litres back on the 2007/08 quota year and more than 230m litres down on 2008/09.
However, dairy experts have dismissed the suggestion that falling deliveries are a future trend.
Michael Barry, director of the Irish Dairy Industries Association (IDIA), said the current milk supply undershoot was simply a symptom of the 2009 dairy market.
"Farmers and processors got a roasting last year and they are still under stress and trying to organise finance," he explained.
"We went through a huge peak and trough without any assistance," he said.