Milk processors are being called on to pay farmers a milk price “that the market is returning”.
Making the calls, Irish Farmers’ Association (IFA) National Dairy Committee chairman Stephen Arthur said that milk processors must pay more than 36c/L for July milk.
Continuing, Arthur pointed out that the Ornua Purchase Price Index (PPI) for July equates to 35.5c/L, but added:
“When the figure is adjusted for the Ornua Value Payment worth 3.22c/L including VAT, the milk price equivalent is 38.72c/L.
“A sustained milk price above 36c/L is achievable from the marketplace, and farmers should receive it for the rest of 2021,” he added.
The chairman noted that both EU and New Zealand future markets have returned price rises in the past week for butter and skimmed milk powder (SMP), adding that the GDT showed increases of 3.8% and 1.5% respectively “in these two key commodities for Ireland”.
Continuing, the IFA chair said:
“Farmers have been faced with a difficult season of poor grass growth and rapidly rising input costs.
“It’s high time farmers got what the market is returning; we have to balance our books too,” Arthur concluded.
This follows the announcement of the latest Ornua PPI for July yesterday (Wednesday, August 4), which dropped slightly for the month of June, as a result of “weaker butter and powder returns”, the Irish dairy exporter confirmed.