Agriculture

Dairy farmers can 'reasonably' expect milk prices to rise

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Dairy farmers can 'reasonably' expect milk prices to rise

IFA dairy chair Tom Phelan: Dairy farmers can 'reasonably' expect milk prices to rise

IFA national dairy committee chairman Tom Phelan has said it’s clear farmers can reasonably expect milk prices to improve for May milk.

“This is based on current market trends; the positive indications coming from the industry itself; and the fact that some processors are paying significantly more than others,” he said.

Mr Phelan said that the Ornua PPI increase to 29.9cpl, including VAT was over 1cpl higher than some of the main milk purchasers hadbeen paying for April milk, and was the latest indicator to reflect improvements in dairy product prices.

“European spot prices for SMP and butter have increased respectively by €230/t and €532/t in the last six weeks, and average EU dairy prices have reflected this trend slightly more modestly. Last week’s GDT was positive overall, with a strong 2.1% increase in the WMP price,” he added.

Mr Phelan said that milk production was slowing or falling in many global dairy regions because of low rainfall and poor milk prices. Demand, which was decimated by Covid-19, was starting to recover as trade resumed and economies slowly reopened after lockdown, he said.

The IFA national dairy committee, at a meeting this Monday, raised serious concerns regarding costs rising fast on farms due to drought. Farmers clearly needed co-ops to do better for them this month, he said.