IFA calls for 1c/L increase for October milk prices
As milk processors prepare to reveal their prices over the coming days for October supplies, they are being called on to “immediately apply a minimum 1c/L increase” to their offerings.
Tom Phelan, the National Dairy Committee chairperson of the Irish Farmers’ Association (IFA), urged the board members of the various co-ops to keep pace with the Ornua Purchase Price Index (PPI), which increased by 1.8 points for October. This figure would translate into 0.6c/L increase in the index, Phelan explained.
“Co-ops paid an average of around 30c/L including VAT for September milk, which includes significantly higher prices by the West Cork co-ops,” he said.
With the exception of those four, most have paid less than the Ornua PPI for the majority of the previous 12 months.
Commenting on last week’s announcement of the Ornua PPI, the IFA’s national dairy chairperson went on to say: “This second increase in as many months, which reflects our own analysis of European market indicators, would allow co-ops to pay 31.5c/L including VAT – over 1c/L more than the main co-ops paid for September milk.
“The first co-ops to call their October milk price will do so before the middle of next week. Farmers will expect their board members to do right by them by truly reflecting the real market improvements in a fully justified milk price lift,” Phelan concluded.
The index for October is 105.6, adjusted from the 103.8 recorded for September.
The change reflects higher powder and stable butter returns, offsetting lower cheddar returns, an Ornua spokesperson said last week.