Dairy forum hears calls for farmer finance

Only two of the West Cork co-ops dropped May milk prices following the Carbery base price reduction announced last week. Bandon and Barryroe both announced they were cutting milk price by 0.5c/litre, but Drinagh and Lisavaird both held.

Late last week, Dairygold announced it was holding May milk price. Arrabawn cut base price by 1c/l but support of 1 c/l in effect means May milk price remains unchanged. Lakeland, Glanbia and Kerry all cut base May milk price last week. Farmers are very cross at the extent of the May price cuts, given signs that dairy markets are strengthening and global milk supplies reducing (see more page 8).

Dairy forum

There was little support for supply control at the dairy forum convened this week, Michael Creed’s first as minister. ICMSA called for milk “supply control” but received no support. Both Department officials and milk processors explained supply control would make no sense given the investments made on-farm and in processing over the last two years.

The banking representatives present suggested they have no indications yet of any cashflow restriction on Irish dairy farms. They explained overdraft levels are in some cases lower than last year but accepted that cashflow pressure could be expected in the third quarter.

Ornua representatives gave a presentation outlining markets beginning to improve and falling global milk supply. Reference was also made to France filling intervention stocks, while complaining about expansion among countries whose processors are finding markets for new product.

Teagasc explained and discussed a plan for farm walks and a new initiative to try and get more dairy farmers measuring cashflow.

Minister Creed commented: “One of my priorities under the Programme for Government will be to support the provision of lower cost and more flexible finance for the sector. I have now conveyed that message strongly to all of the banking institutions.”

IFA dairy chair Sean O’Leary said: “Farmers must have access to low-cost, flexible cashflow finance that they can secure reasonably readily and, most of all, very promptly.”