Dairygold’s decision to increase its milk price for May supplies will “help boost farmers’ confidence at a challenging time”, according to the Irish Farmers’ Association (IFA).
IFA National Dairy Committee chairman Tom Phelan welcomed the decision by the board of Dairygold to increase its May milk price by 0.5c/L to 29.19c/L including quality and sustainability bonuses and VAT.
This is an increase of 0.5c/L on the southern co-op’s previous price.
He said it would help boost farmers’ confidence at a challenging time for cash-flow and morale.
Co-ops that have yet to set their May milk price should take a leaf out of the Dairygold book. All co-ops should look to improve June payouts.
“The outlook for dairy markets continues to be reasonably positive, so it is important that co-ops now start to consider more favourably future milk pricing decisions,” the chairman added.
“We have seen the end of milk price cuts, and with recent indicators including yesterday’s GDT [Global Dairy Trade] auction, showing firmer trends, farmers will need to see better milk prices from all co-ops going forward,” he concluded.
Making the co-op’s price announcement earlier today, Wednesday, June 17, a Dairygold spokesperson said: “Dairy markets in recent weeks have been more positive, but it’s too soon to call it a true recovery, as market uncertainty and volatility abounds.
Covid-19 lockdowns are being lifted with food-service pipelines refilling as businesses begin to reopen.
“Chinese demand for the remainder of the year and the Brexit situation remain real concerns,” the co-op representative warned.