Given the ongoing financial pressures on dairy farmers who are trying to pay massive bills built up since spring 2012, it is extremely disappointed at the failure of dairy processors to keep in line with the buoyant dairy market and pay the full market return to farmers, according to the deputy president of ICMSA, Pat McCormack, this afternoon.
All the leading market indicators point towards higher milk prices yet the processors are refusing to increase milk prices to reflect these circumstances, he said.
The Global Dairy Trade Auction average weighted price on all products has increased again this month and is a staggering 79 percent higher year on year. The auction was up 4.9 per cent this week. The Dutch Dairy Quotations have stayed consistently high for all products since the start of the year and are rising further in recent weeks with the butter/SMP combination now returning 47 cents per litre and WMP returning 47.1 cents per litre.
While processors may dispute some indicators, McCormack said, the Irish Dairy Board Price Index is an actual reflection of the actual returns received by Irish processors.
“The index is now at a historical high of 126.6 for June. The index has increased 14 per cent since the start of the year that is not reflected in the increase in milk price. Based on Central Statistics Office data for milk price per litre up to May, milk price increases have not kept up with increases in the purchasing index.
He added: “For the most recent figures available, official average milk price increased by 3.3 percent between January and May. However the Irish Dairy Board purchasing index increased 12.3 per cent in this period. This means the dairy processors have substantial ground to make up and it is essential that they close this gap.”
Manufacturing Milk Prices (including VAT) (Euro) by Product and Month and IDB PPI
|2013 January||2013 May|
|Milk (per litre), 3.7% butterfat||0.361||0.373|