IFA president Tim Cullinan: seeks talks with Ornua over PPI review
IFA president Tim Cullinan has called for an urgent meeting with Ornua following reports that it planned to review aspects of the Purchasing Price Index (PPI).
Following a meeting of the National Dairy Council, he said that the reports had left farmers very concerned.
“Farmers and IFA have always valued the transparency the PPI has brought to the dairy market. The same transparency must apply to any proposed change in any aspect of the PPI,” said Mr Cullinan.
The Toomevara farmer said that any review must also be used to show the full benefits Ornua returns to co-ops.
“I think Ornua needs to reflect on the timing of the review when there is such volatility and uncertainty in the market due to Covid-19 and with Brexit looming. Farmers need to have full confidence in the PPI and we can’t risk any perception that the goalposts are being moved,” he said.
Meanwhile, IFA national dairy committee chairman Tom Phelan said the 8.3% increase in last week’s GDT auction result was the clearest indicator yet than markets were recovering as global markets reopen and food services demand recovers post lockdown.
Mr Phelan said he believed this should give co-ops confidence to increase June milk prices by at least 1cpl
“Whole milk powder prices are up a whopping 14%, with butter up 3%, SMP 3.5% and Cheddar cheese 3.3%. This is a strong vote of confidence by traders in the global dairy demand for the next five to six months,” he said.
Mr Phelan said that after several weeks of steady European spot and average market price increases for the main commodities, he believed this was the most decisive indicator yet to show that confidence and demand were returning to dairy markets
“Co-ops will be deciding their milk price for June milk shortly. This extremely GDT result must encourage them to return at least an additional 1cpl to their suppliers,” he concluded.