Dairy processors will now express their milk price on the basis of 4.2% butterfat and 3.4% protein in addition to 3.3% protein and 3.6% fat, Dairy Industry Ireland (DII) has announced.

It says the move is to reflect the higher fat and protein percentage produced, but it will not be quoted in euro per kg milk solids. The move has been met with anger and bewilderment.

Some co-op chairs seem to be baffled by the move and most suggest it hasn’t been discussed at board level. Farm organisations have come out strongly against it.

Acting IFA dairy chair Stephen Arthur said: “We see no benefit to this change other than causing more confusion among suppliers regarding milk price. While IFA will always support change initiatives that benefit the overall industry, we see no benefit for this proposal.

This is a change sought solely by management, not by suppliers, and must be reversed

“At a time when suppliers are seeking price transparency from their milk processor; they are faced with more complexity. This is a change sought solely by management, not by suppliers, and must be reversed. It’s all for optics.”

ICMSA dairy chair Ger Quain said: “ICMSA has consistently called for greater transparency in milk price but simply rebasing milk price is not transparency and does not allow for better comparisons between co-ops.

We will discuss the matter at our board meeting on Friday

“To suggest otherwise is ridiculous and – if milk processors are serious about price transparency – then they should publish data in relation to market returns on their product mix and stop hiding behind the ‘commercially sensitive’ excuse.”

Glanbia chair John Murphy said: “We will discuss the matter at our board meeting on Friday.” Arrabawn chair Edward Carr said, “we have discussed it and IT systems allowing, we will have it on the January statement.” Dairygold chair John O’Gorman said, “we discussed it at ICOS board level and there was broad agreement, and we also discussed it at Dairygold level so we will go with three milk prices in text messages and on statements.”