Markets
Rapid fall in farmgate milk prices could see drop in production, dairy boss warns
Costs still ‘astronomical’ for farmers while milk prices could fall to 35 cent a litre, warns Lakeland chief
A significant correction in Irish milk supply is likely to happen this year as farmgate prices fall below the cost of production, one of the country’s largest dairy companies has warned.
Colin Kelly, chief executive of Lakeland Dairies, predicted 2023 would be an “exceptionally tough year” for dairy farmers following a rapid fall in global commodity prices for key products such as butter, cheese and milk powders.
“Right now, farmgate milk prices are falling sharply in reaction to the correction we’re seeing in international dairy markets, but the cost of production for farmers is still astronomical,” Kelly told the Business Post.
