Scope to add ‘another cent onto the July milk price’
There is scope for co-ops to put another cent onto the milk price for July supplies, according to the Irish Farmers’ Association’s (IFA’s) Dairy Chairman, Sean O’Leary.
This follows on from relatively static results for Ornua’s Purchase Price Index (PPI) and a slight decrease at the latest Global Dairy Trade (GDT) auction.
O’Leary said that prices continue to be strong and – taking everything into account – the outlook remains positive at present.
O’Leary highlighted the butter fat to protein ratio in place by co-ops. He called for the co-ops to start returning more for fats, since they are getting more for them.
Regarding the most recent GDT figures – a decrease of 1.6% was recorded at the latest event – O’Leary said that overall it was pretty much “steady as you go”, with little movement one way or the other, which is similar to New Zealand at the minute.
He added that big European milk-producing countries hadn’t been producing as expected this year, which could indicate more structural damage done to the industry than previously thought by the severe prices in recent years.
Ornua’s PPI for July
Ornua’s PPI for the month of July has remained relatively static compared to the previous month, recording an increase of just 0.1 percentage points.
The PPI for the seventh month of the year equates to 110.1%; this is the third consecutive increase reported in Ornua’s PPI since April.
An increase of 1.8 percentage points was recorded for May – representing the first increase in the PPI this year. Last month an increase of 3.2 percentage points was noted for the month of June.
Earlier in 2017, the PPI had remained relatively static; it began the year at 105.4%, before decreasing to 105% in April. Ornua’s PPI has currently reached its highest level since the autumn of 2014.