Local dairy industry could be under financial pressure without new EU supports

The local dairy industry could be under severe financial pressure without new EU supports.
A new report by Dairy industry Ireland has found the price of milk could fall by up to 20 per cent this year.
With current restrictions due to the coronavirus and the lack of demand around the world, there’s an over-supply of milk.
Currently around 46,000 people are employed either directly or indirectly by the dairy sector.
A reduced market demand could see prices per litre paid to farmers drop dramatically and as a result put over 10,000 jobs at risk.
Dairy Industry Ireland says despite help from the Irish government, more needs to be done at a European level to ensure the sector which is estimated to be worth 11.3 billion euro can continue.
DII Director Conor Mulvihill said the report outlines the threat faced by dairy farmers and the rural economy.
Elsewhere, the report also shows how working capital of €550 million is needed to help processors deal with the storage costs of less product being exported.
The EY conducted report has been submitted to both the Irish Government and European Commission for consideration.