The President of the Irish Farmers Association (IFA), Joe Healy, has today warned that farmers cannot be expected to bear the market risk from volatile milk prices and still expand production just to fill capacity.
The IFA President said co-ops must give stronger signals of what market demand exists at a viable milk price and let farmers make informed decisions on volumes over and above that. He further claimed that farmers are not equipped to cope with prolonged periods of low prices and the volatile incomes that are now the norm.
Speaking at a conference in Laois, IFA President, Joe Healy said, "After five years of major investment, co-op management teams and boards must take stock and find cost savings and efficiencies in every area of operation. Consolidation, joint ventures, co-operation must come back to the fore."
He added, "Most farmers now produce below break-even. With low milk prices, high spring feed, tax and superlevy bills, farm cash flow is stretched to the limit. We know markets will recover when supply and demand rebalance. But we also know that bad times, as well as good, will come again: this is what volatility means."
Source: www.businessworld.ie
