Irish dairy farmers raise prices due to production cost increase

Dairy farmers in Ireland are raising prices for milk, cheese, and butter. They can no longer keep up with increasing production costs. In the last year, these costs have risen nearly 20%. This increase is expected to lead to higher prices for consumers. Recent data shows that the price of two liters of milk has gone up by 26 cents, now costing €2.44. A kilo of shiny Irish cheddar cheese is 50 cents more expensive, priced at €11.14. Butter has also seen a price hike of 70 cents, reaching €4.43 for a pound. Denis Drennan, president of the Irish Creamery and Milk Suppliers' Association, mentioned that food prices have not kept pace with inflation, which has led to rising costs. He believes that consumers will have to bear these new costs. Conor Ryan, CEO of Arrabawn-Tipperary Co-operative, noted that labor costs and energy expenses have also sharply increased. Many young people are hesitant to enter dairy farming because of uncertainty in the sector. Drennan pointed out that environmental pressures are another challenge for farmers. These pressures come with costs that cannot be absorbed anymore; they will have to reflect in price increases for consumers. Farmer-owned cooperatives are also affected. They produce items like cheese and butter, mainly for export. Ryan mentioned that energy costs have become a major concern, far exceeding previous prices. To combat high energy bills, they are exploring solar energy options. Retailers are feeling the pinch too. Sophia Noone from a farm shop in Bray said they are struggling to keep dairy products like butter in stock due to rising prices. They may need to consider changing recipes for items like cakes that use dairy to manage costs. The global supply of milk is decreasing, affecting prices. Michael Wallace from University College Dublin explained that the Irish dairy market is heavily influenced by global trends. He warned that supply is likely to remain tight due to increased regulations, which will keep prices elevated.