Co-ops have the opportunity to pass back more of the continued improving market value, following the end of lockdown and the increase in international trade over the last three to four months, IFA dairy committee chair Tom Phelan has said. The IFA insists that some co-ops now have the scope to increase prices by 1c/l for July milk.
Co-ops have the opportunity to pass back more of the continued improving market value, following the end of lockdown and the increase in international trade over the last three to four months, IFA dairy committee chair Tom Phelan has said.
The IFA insists that some co-ops now have the scope to increase prices by 1c/l for July milk.
Phelan said: “The Irish Farmers Journal milk league for June 2020 shows a gap between the top and bottom processors at 2c/l, equivalent to €1,250 for the June output of the average producer.
“This clearly suggests some co-ops have scope to improve their position and their suppliers’ cashflow by lifting their July milk price by at least 1c/l.”
Below par
European average butter prices rose €50/t during July, with powder prices remaining relatively stable after a good recovery from their April and May lows.
Spot quotes for butter have stabilised in recent weeks at €800/t above where they were in mid-April.
The IFA has said that international milk price comparisons show that Irish milk purchasers are performing below par.
Phelan explained: “The LTO-ZuivelNL monthly milk price review for June 2020 shows the three participating co-ops Kerry, Dairygold and Glanbia respectively come in between €1/100kg and €2/100kg below the average for the main European processors.”
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