The decision taken by the board of Aurivo to cut its milk price has been labelled “disappointing” by the Irish Farmers’ Association (IFA) National Dairy chairman Tom Phelan.
Commenting on the move, Phelan said that the decision to lower Aurivo’s October milk price by just over 1c/L is at odds with the other main milk purchasers’ call and will disappoint its suppliers in one of the most difficult farming and financial years.
“IFA’s research has shown that, just like the other main milk purchasers other than the West Cork co-ops, Aurivo had paid farmers less than the Ornua PPI milk price equivalent for the period from May to September 2018.
By our calculations, a 350,000L Aurivo supplier would have received just under €1,700 more over that period had they been paid the Ornua PPI milk price equivalent – the October price cut will compound this further.
“It is crucial that other co-ops take their lead from Glanbia, Lakeland, Kerry and Dairygold – all of which have held their October prices.
“Aurivo and all other co-ops must now commit to holding their milk price for the rest of the winter,” he added.
“Butterfat prices have eased, but SMP average, spot and future market prices have all been firming, aided by a massive destocking of SMP out of intervention.
“There are reasons to be optimistic about powder markets for 2019, and this must help co-ops to hold milk prices for the coming months,” Phelan concluded.