Farmers ‘can reasonably expect’ improved milk prices for May
“It is clear” that farmers can reasonably expect milk prices to improve for May milk, according to the Irish Farmers’ Association (IFA).
Commenting, IFA National Dairy Committee chairman Tom Phelan pointed to factors in support of this, stating:
“This is based on current market trends; the positive indications coming from the industry itself; and the fact that some processors are paying significantly more than others,” he said.
The Ornua PPI [Purchase Price Index] increase to 29.9c/L including VAT is over 1c/L higher than some of the main milk purchasers have been paying for April milk – and it’s the latest indicator to reflect improvements in dairy product prices.
“European spot prices for SMP [skim milk powder] and butter have increased respectively by €230/t and €532/t in the last six weeks, and average EU dairy prices have reflected this trend slightly more modestly.”
The chairman also pointed to last week’s Global Dairy Trade (GDT) auction, which he said was positive overall, with a strong 2.1% increase in the whole milk powder (WMP) price.
“Milk production is slowing or falling in many global dairy regions because of low rainfall and poor milk prices. Demand, which was decimated by Covid-19, is starting to recover as trade resumes and economies slowly reopen after lockdown,” he said.
The IFA National Dairy Committee, in its meeting yesterday [Monday, June 8], raised serious concerns regarding costs rising fast on farms due to drought.
“Farmers clearly need co-ops to do better for them this month,” he concluded.