Co-ops 'owe it to farmers' to increase the June base milk price

Co-ops “owe it to farmers” to increase the June base milk price, given Ornua’s Purchase Price Index (PPI) announcement for June, according to the Irish Farmers’ Association’s (IFA’s) National Dairy Committee chairman, Tom Phelan.

It was recently confirmed that the PPI for the sixth month of this year recorded a jump of almost four percentage points compared to the May equivalent.

The June index now stands at 109.0; it has been adjusted from 105.4 in the previous month.

Phelan explained that today’s increase now brings the PPI closer to the value noted in June of last year – which stood at 110.

Continuing, the dairy chairman added that the PPI announcement reflects the fact that market trends during June had improved to meet at least the full pay-out for May – including both the base milk price and any support payments regarding the weather or fodder.

Any co-ops meeting either today or in the coming days to decide on their respective milk prices for the sixth month of this year “owe it to farmers to roll the support into the base price and add at least an extra 1c/L to the June base”, Phelan said.

Concluding, he noted: “Not only do markets justify this increase comfortably, farmers need it very badly after an exceptionally challenging year for fodder and for cash flow.”