Farmers ‘very disappointed’ with May milk prices so far – IFA
Farmers are “very disappointed” that co-ops who have released their milk prices for May supplies have not decided to increase their offering, according to the Irish Farmers’ Association (IFA).
Tom Phelan, the association’s dairy committee chairperson, said that the decision by a number of co-ops to hold their prices was widening the gap with the Ornua Purchase Price Index (PPI).
He went on to claim that farmers were “particularly aggrieved” over some co-ops using higher constituents to “inflate the co-ops announced price”, a practice he labelled “deeply unfair”.
“We have already shown that many co-ops have been paying less than the Ornua PPI for some months. Now, co-ops are allowing the gap to widen even further when it is clear that the higher May Ornua PPI milk price equivalent of 30.45c/L + VAT (32.09c/L including VAT), would allow most to pay at least 1c/L more,” Phelan claimed.
He further claimed that co-ops were using the uncertainty around Brexit to justify holding prices rather than increasing them.
On Wednesday, June 12, Glanbia became the processor to announce its price for May, holding on 30.5c/L, including VAT.
Glanbia Ireland decided it would hold on 30c/L, including VAT, while the board of Glanbia Co-op decided to make a support payment to members of 0.5c/L, including VAT, for May milk supplies.
And yesterday afternoon, Lakeland dairies revealed a price of 31.28c/L, including VAT. As with the other co-ops, this was held.