DONEGAL DAIRYMEN HIT FOR €15M

first_imgAs Donegal’s four hundred dairy farmers count the cost of falling milk prices it is estimated that the county will suffer a decline of €15 million in the business for 2015.And there is no immediate expectation for an early recovery according to sources in the industry.One Ramelton dairy farm has reported losses of €56,000 in the first half of this year alone. The farmer said that he expects to take a hit of at least €80,000 for the whole year and this kind of loss is not sustainable should it work through into 2016. It is feared the milk price collapse could see as much as one billion Euros removed from a very fragile rural economy this year.Ironically consumer prices have not come down even though prices being paid to farmers have dropped 30% amid more transparency in the food supply chain.Milk has dropped by ten cents a litre since this time last year and the euphoria about quotas being abolished has been dampened greatly due to the harsh reality of supply and demand.Meanwhile the IFA has warned one-third of dairy farmers could find themselves selling at negative margins for 2015 as a whole. Milk production figures for April and May were 12% higher than for the same period last yearNew figures from the Central Statistics Office show the price farmers are receiving for milk is down 24% compared to this time last year.The reduction is being driven by lower milk prices in the global market place.Despite the drop in prices, the amount of milk being produced is at an all-time high as farmers have increased their output in response to the abolition of EU milk quotas at the start of April.Milk production figures for April and May were 12% higher than for the same period last year.The President of the Irish Creamery Milk Suppliers Association John Comer said there is a lot of anxiety among his members, particularly those who have a lot of borrowings, who are finding themselves constrained because of a lack of profitability.“That has a serious effect not only on the members but also on the economy,” he said.Every one once cent drop in the milk price paid to farmers takes €60m out of the economy. Mr. McMahon says that the fact that Donegal milk is processed in Killygordon has been a big help and costs have been consequently reduced to a minimum and the industry has got a good spin off with the sale of Donegal Creameries to Connacht Gold in 2012 was a major plus for the Donegal farmers.In July, 185 new tractors were licensed – down from 198 in the corresponding month in 2014 and 246 in 2013.To date in 2015, 1,358 in tractors were licensed, according to the CSO figurers. This compares to 1,551 licensed over the same period last year.The CSO figures are represent a 12% fall in the number of tractors licensed for the first time in 2015 compared to 2014. There has also been a substantial fall in the number of imported tractors this year, the CSO figures show. DONEGAL DAIRYMEN HIT FOR €15M was last modified: August 13th, 2015 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)Tags:dairy farmersdonegalmilklast_img read more

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