Commenting on developments in milk price, Mr. Gerald Quain, Chairperson of ICMSA Dairy Committee has stated that the milk price being paid to Irish dairy farmers remains behind market returns and Co-ops need to increase milk price to at least reflect the Ornua PPI. Every 1 cent below market returns represents a loss of €80m in a full year and this is €80m taken out of the rural economy and put simply, dairy farmers must get what the market is returning.
With the Ornua PPI for June at 31.6cpl, it is clear that milk price has lagged behind market returns during our peak production period and farmers are rightly asking why there is such a disparity. June milk prices are still behind the PPI and it has become a pattern that is simply unacceptable. We can’t have a situation where market returns are being withheld from dairy farmers during the peak production months.
In terms of our position relative to EU dairy farmers, it shows that Irish processors are 1.5 Euro/100kg below the rolling twelve-month average milk price which amounts to €120m if this difference was eliminated. Global milk supplies have been declining in the first half of 2019 with only minimal growth at EU level which should also be a positive from a price perspective.
ICMSA believes the facts are clear, some of our processors have been paying below the PPI and put simply Co-ops boards must insist that milk price reflects the current PPI index, concluded Mr. Quain.
Ends 12 July 2019
Gerald Quain, 086-3623041
Chairperson, ICMSA Dairy Committee
ICMSA Office 061-314677