Co-ops are due to set milk prices for October from this week onwards and while volumes are continuing to decline, the IFA wants co-ops to increase the October price by 3c/l.

According to an exclusive Irish Farmers Journal survey, October milk supply fell by between 3% and 11%.

Chair of IFA’s dairy committee Seán O’Leary said co-ops should not use the recovering global market as a way of improving their own finances.

“There may be a temptation by co-ops to rebuild their balance sheet, after supporting milk prices earlier in the year. However, farmers are still receiving milk prices below production costs and it is crucial that every last cent [of the] fast improving market returns [is] passed back to farmers,” O’Leary said.

He added that a strong increase for October milk would allow dairy farmers to approach the 2017 season with more confidence.

“With average EU gross returns of around 35c/l before processing costs through all the month of October, a 3c/l increase is fair and will set farmers’ prices up to more sustainable levels for the crucial spring,” O’Leary added.

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Co-ops must resist ‘temptation’ not to increase milk price - IFA

With a continued improvement in the global dairy trade, the IFA has urged co-ops to pass on the maximum increase to dairy farmers.