Farmers will expect their board members to do right by them by truly reflecting the real market improvements in a fully justified milk price lift as co-ops begin to set prices this week, IFA dairy committee chair Tom Phelan has said.

Phelan has urged co-op board members who will be meeting over the coming days to decide on the October milk prices to immediately apply a minimum of 1c/l increase.

“Co-ops paid an average of around 28.5c/l (excluding VAT) for September milk, which includes significantly higher prices by the west Cork co-ops.

“With the exception of those four, most have paid less than the Ornua PPI for the majority of the previous 12 months.

“The Ornua PPI for October trade has risen by 1.8 points to 105.6, an increase equivalent to 0.6c/l. This second increase in as many months, which reflects our own analysis of European market indicators, would allow co-ops to pay 29.9c/l (excluding VAT) – over 1c/l more than the main co-ops paid for September milk,” he said.

Global Dairy Trade

Prices at the Global Dairy Trade were up 3.7% at last week’s auction in New Zealand.

Skimmed milk powder (SMP) prices were up 6.7% to an average price of €2,639/t (US$2,924/t) and whole milk powder (WMP) prices were up 3.6% to an average of €2,937/t (US$3,254/t).

Butter prices were up marginally by 0.2% to an average of €3,716/t (US$4,117/t).

Feed rebate of €6/t available from Dairygold

Markets point to a minimum milk price of 31c/l – ICMSA

Farmers expect co-ops to increase milk price – IFA

The IFA has urged co-op board members who will be meeting over the coming days to decide on the October milk prices to immediately apply a minimum of 1c/l increase.