Irish Dairy Farmers Face €1.3 Billion Loss Due to Milk Price Decline

The Irish Creamery Milk Suppliers Association (ICMSA) has reported a significant financial threat to dairy farmers in Ireland, projecting a €1.3 billion loss in income over the next 12 months due to a decline in milk prices. This downturn began in August and has continued to impact the industry.

ICMSA President Denis Drennan highlighted that this loss could result in a broader economic hit of nearly €3 billion when considering the multiplier effect on rural communities. He noted that rural Ireland relies heavily on milk production, which supports not only farmers but also contractors, machinery, and other service providers.

Counties such as Cork, which produces about 25% of the country's milk, are expected to see a direct loss of €320 million in dairy income. When adjusted for the multiplier effect, this could amount to a loss of up to €750 million in economic value. Similarly, Limerick and Kerry are anticipated to face direct income losses of €100 million and €83 million, respectively, with broader economic losses reaching €230 million and €190 million.

In Cavan, dairy farmers have already experienced a €35.5 million loss in direct milk revenue, resulting in an €81.5 million reduction in the county’s economy after adjusting for the multiplier effect. Mr. Drennan emphasized the challenge for farmers to plan financially, given the potential 35% drop in milk income this year compared to last.

The ICMSA has urged the implementation of measures such as a voluntary reduction scheme to stabilize prices and support the market. Without such interventions, hundreds of millions of euros may disappear from the dairy sector and its dependent rural economies.