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"The situation is becoming extremely serious as milk suppliers are left looking at massive losses for their peak production months at precisely the same time as costs are surging upwards and weather factors look likely to massively drive up input costs," Mr McCormack said.
"It is now incumbent on those processors paying the lowest price to review their decision-making and to increase the price back to the level appropriate with an understanding of the cost pressures their milk suppliers are under."
Meanwhile, Ireland East MEP Mairead McGuinness has urged the EU Commission to allow greater flexibility in the dairy regime in the run up to quota abolition in 2015.
Speaking in the European Parliament in Strasbourg last week, she pointed out that dairy farmers in some member states had paid up to €50m for milk quota while the EU as a whole was 5pc under quota.
"The €16.5m superlevy bill Ireland is facing is a severe blow to individual producers.
"I want the Commission to look at a range of possibilities to ensure there is a soft landing in all member states in the EU," Ms McGuinness said.
The possibilities open to the Commission include reducing the superlevy fine from the current level of 28c/l, improving the butterfat adjustment or increasing overall quotas.
The Strasbourg debate highlighted again the extent of the differences between MEPs on the future of the dairy sector, with some arguing for the retention of a supply control measure.