DAIRY farmers may be facing sharp cuts in the price they get for their milk from dairy co operatives, the Irish Co Operative Organisation Society has warned. Milk prices to farmers are currently at record levels as a result of the record product prices achieved in 1995. But the ICOS director general, Mr John Tyrrell, said yesterday that dairy markets have weakened since the beginning of the year due to cuts in export refunds, currency factors and some customer resistance to the record dairy product prices.

"Despite our resistance to cuts in export refunds, the European Commission has cut skim milk powder refunds by 35 per cent, cheese refunds by 15 per cent and butter refunds since January 1996," said Mr Tyrell.

"When market price changes occur, co operatives cannot ignore these market realities in the prices paid for milk. Record milk prices were paid to producers in 1995," he said.