Some of Ireland's top dairy farmers, who supply milk throughout the year to Irish consumers, are considering quitting the business, which has been the most lucrative end of the market for two decades, writes Seán MacConnell, Agriculture Correspondent.
A combination of falling world prices, the poor harvest, rising costs and inability to hold qualified staff is causing some of the best farmers in the State to look for alternative enterprises, according to dairy expert Ms Catherine Lascurettes.
"For the first time in many years I am hearing very negative sounds from the top end of the industry because of the combination of events which have happened very quickly," she said yesterday.
Ms Lascurettes, who is the Irish Farmers' Association's dairy committee expert, said that the sector had been taken by surprise by the sudden collapse of world markets.
"I have attended a series of meetings around the country over the last few weeks to help put pressure on to hold the milk prices and I am being told that a lot of people are reassessing their situation.
"A number of people have told me that they have had to reschedule their loans and others have said they have had to impose restrictions on their private costs.
"I know that even within farming itself there is scepticism about complaints from the dairy sector, but this time the situation is very serious."
She said that the traditional benchmark price for milk - £1 per gallon/28 cents per litre - was not being achieved by many farmers at present.
The average price farmers were receiving for their milk was between 25 and 27 cents a litre and many were getting less than that.
She expected this problem to intensify over the winter, when the traditional winter milk suppliers would be looking at their future.
A spokesman for the Department of Agriculture and Food said that Ireland had been treated very well by the EU Commission on intervention. The Minister, Mr Walsh, had made the dairy industry's problems a priority with the Agriculture Commissioner, Mr Franz Fischler.