Dairy sector warned not to join price war

Dairy processors in Ireland have been warned not to become involved in a price-cutting war in the UK involving dairy farmers …

Dairy processors in Ireland have been warned not to become involved in a price-cutting war in the UK involving dairy farmers and cut-price retail chain Lidl.

In Britain, Lidl has been attempting to cut the price it pays dairy farmers for milk by 1.5p per litre, to 16p per litre. This is being opposed by the Farmers' Action Group (TFAG), which represents dairy farmers.

That group recently approached the Irish farm organisation seeking support when it was told by Lidl that if it did not get the cuts it required, it would source its milk outside the UK.

The Irish Creamery Milk Suppliers' Association president, Mr Pat O'Rourke, said the Republic would seem to be the only alternative source because Europe would not have the capacity to supply the store.

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"The Farm Action Group came to us for support and we fully support them because they are being asked to produce milk at below cost," he said. "The leaders of TFAG also indicated that there would be a very negative reaction by British dairy farmers to other food exports coming in from Ireland if Irish farmers were supplying milk to dairies that were taking part in breaking such a dispute."

Mr O'Rourke said he was calling for support for the British farmers not because they might target Irish imports but because they had a just cause.

He said his organisation was carrying out an investigation to find out if any Irish-based co-operatives or dairies have been approached to provide low-cost milk to the British market.