Co-ops have been told there is still room for a June milk price increase
The June PPI reduction of 1.6 points announced this Wednesday by Ornua, which is equivalent to a milk price of 29.98cpl before VAT (31.6cpl including VAT), still leaves room for the majority of co-ops to increase their June milk price by 1cpl, according to IFA national dairy chairman Tom Phelan.
“Apart from the West Cork co-ops, all milk purchasing co-ops have undershot the Ornua PPI in the milk price they have returned to farmers for most of the last seven months,” Mr Phelan said.
He said that global milk supplies were not growing at the moment, and were falling dramatically in some of the main regions, such as New Zealand, the US, Australia and Argentina. Also, intervention stocks of SMP are now totally empty. Demand is relatively good in Asia, South America, the EU and the US.
“Concerns over the potential impact of economic and geopolitical factors that have yet to materialise is not a good enough reason to deny Irish farmers for several months a milk price fully justified by market returns,” he said.
“Co-ops will be meeting from this week to decide on their June milk price, and I maintain that most of them should increase their price by at least 1cpl, in fairness to their suppliers,” said Mr Phelan.