Most milk processors should follow the example set by north-west co-op Aurivo and hold their milk prices for May, according to the Irish Farmers’ Association (IFA).
IFA National Dairy Committee chairman Tom Phelan commended Aurivo for holding its April base milk price when most others cut theirs by 1c/L.
“Dairy markets have been heavily impacted by Covid-19 since February,” the dairy committee chairman noted.
“However, as more countries get out of lockdown and markets reopen, spot prices and other market quotes in the last four to five weeks, and even the latest GDT [Global Dairy Trade] auction, have improved from low levels,” Phelan said.
Meanwhile, most co-ops have cut their milk price by a total of 3c/L between March and April, which will cost an average farmer over €6,500 over the peak months from March to June alone.
“The gap between the lower market returns and the price paid to farmers has narrowed, and it is now time for co-ops to hold milk prices and to let the rising market meet them,” the chairman added.
“Aurivo deserves credit for its moderate approach on milk prices when farmers are under huge pressure,” he highlighted.
Concluding, Phelan said: “We urge other co-ops to follow its lead.”