The Irish Farmers' Association is to launch its milk price campaign tonight aimed at securing higher returns from co-operatives and other processors.
While the IFA has not yet targeted supermarkets and retail outlets, the dairy farmers are demanding 28c a litre from the processors.
During its national tractor campaign, the president of the IFA, Mr John Dillon, warned the co-ops that his members were not prepared to accept anything less than this in the coming year.
The organisation's national dairy committee chairman, Mr Michael Murphy, said international dairy markets had recovered substantially in the last few months.
He warned co-ops against offering low prices for milk to farmers at this time of year when little was being produced, to "condition" farmers to accepting less than they were entitled to.
"There is simply no justification for any price cuts at this point," said Mr Murphy before the launch of the campaign at the Kilcoran Lodge Hotel, Cahir, Co Tipperary.
"Dairy markets in the early weeks of 2003 are healthier than they were 12 months ago.
"This is clear from the increase in the current Fitzpatrick Associates index, which estimates average dairy market returns to the Irish dairy industry," he said.
"Supply and demand for commodities are more balanced, and world powder and butter prices have increased by 45 per cent and 25 per cent respectively since last summer.
"UK cheddar cheese prices have begun a major recovery, rising by 18 per cent in the last six months, and US casein prices are also increasing," Mr Murphy said.
"While US and EU powder stocks remain, and the strong euro does erode some of the market improvements, there are clear signs that 2003 will see lower use of intervention, and a likely price recovery.
"This will be helped by lower product availability in Australia and New Zealand," he added.
Mr Murphy called on all co-op boards to hold prices in the short term, and to increase prices as market returns recover.
"Farmers need price increases and will expect market improvements to translate into the absolute minimum of 28c a litre, and more, as markets recover," he said.