Farm organisations come out strong against price cuts

Dairy farmers asked to pay too much too soon – IFA

IFA national dairy committee chair Tom Phelan said: “Maintaining the milk price would have helped farmers pay bills and better position themselves for the difficult months ahead. The IFA is now calling on those processors who have yet to decide on their March milk price to think harder on what their decision will mean for their suppliers. Cutting the milk price now to minimise what may be down the line is of no benefit to farmers today. Co-ops need to focus their attention on maximising the milk price, and plotting a sustainable way through the crisis for their suppliers,” he stressed.

Very disappointed with price cuts – ICMSA

ICMSA dairy committee chair, Gerald Quain said that “obviously” his organisation was very disappointed by the price cuts and he felt that forward-selling of the type and extent normally practised by co-ops should have buffered March prices to a greater degree. He said: “We know prices are under pressure, but we’re going to examine every reduction and we’re entitled to be cynical at the way that the Ornua index was not matched on the way up, but was matched immediately and exactly on the way down.” He warned that farmers cannot be expected to take all the pain while others made record profits.

Carbery, Aurivo and Dairygold yet to meet

Carbery

Carbery chair TJ Sullivan said: “The Carbery board is meeting this Thursday. Ultimately, it’s a decision for each of the west Cork co-ops after that. I can’t give any indication on price until the board meets, but, suffice to say the decision for each co-op comes back to the basket of goods and exposure to global markets in various different ways.”

Aurivo

Aurivo chair Pat Duffy (pictured right) said: “We are meeting next Monday and our aim at board level is to protect the farmer and the co-op. Obviously as an industry there is more milk that was destined for foodservice going to be going towards powder, but China opening up is a bright light for that piece.”

Dairygold

Dairygold Co-op chair John O’Gorman said: “We are looking at every cost within the business – not just milk price. We meet on Friday this week and setting milk price is a board decision.

“As a business, we have to try and predict the future and we also need to manage the debt repayment we have taken on,” O’Gorman said.

Read more

Co-ops to set March price next week

Chinese dairy imports rebound strongly in February