Dairy co-op board members are coming under pressure from farmers this week to hold March milk prices as the on-farm costs of a late spring continue to rise.

Gestures of goodwill from processors in relation to fodder shortages would be destroyed if milk prices are cut, according to the IFA.

“The stress among farmers who did not get a chance to rest after the hectic calving season are at dangerous levels,” warned IFA dairy chair Tom Phelan, adding that a price cut would be interpreted as a ‘further kick in the teeth’.

“For a 100-cow herd, a three-week delay in turnout, for example, would cost the farmer around €5,500.”

Glanbia and Lakeland are setting prices on Thursday and other co-ops will meet next week.

Lower cheddar and powder prices saw the Ornua Purchase Price Index (PPI) fall from 105.4 in February to 100.4 for March. This represents a return of 28.08cpl, excluding VAT, based on Ornua’s product purchase mix.

However, dairy markets in Europe have risen strongly in the last week as bad weather impacts milk supplies.

Butter is trading as high as €5,200/t, with almost no stocks held in storage across Europe.

European dairy future markets suggest strong demand for butter to the end of the summer, with July, August and September prices trading between €5,800/t and €5,900/t.

Cheddar

Cheddar prices are steady at €3,200/t. Whole milk powder (WMP) is trading at €2,800/t, while skimmed milk powder (SMP) prices rose slightly this week to €1,300/t.

However, Lakeland CEO Michael Hanley has said SMP prices are still 5c/l to 6c/l under the floor price of intervention. “This means we are paying an unsustainable price at the moment for milk,” said Hanley.

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Fodder crisis drives butter price spike in Europe

Fodder problems, underweight maiden heifers and taking a break