The Chairman of the Irish Creamery Milk Suppliers Association’s (ICMSA) Dairy Committee has welcomed the announcement by Lakelands that it will pay 33c/L for June milk – a price increase of 1c/L.
Acknowledging the decision, Gerald Quain said it made a favourable contrast with what he described as the inexplicable caution shown by other milk processors.
The chairman said that member feedback to the ICMSA suggested that the appropriate price increase due in May had been held back by processors – and that now needed to be rectified by meaningful rises for June and July supplies.
Quain stated that the “low and slow” approach to passing back better prices and timely adjustments of the Ornua PPI (Purchase Price Index) upwards had to finish – and boards and executives had to recognise that farmers could read and follow the data just as easily and accurately as the processors and co-ops themselves.
Lakeland’s June price marks the second consecutive monthly increase announced by Lakeland Dairies; it also increased its May milk price by 1c/L last month.
Other processors are expected to announce their June milk prices in the coming days.
Ornua PPI increase
Earlier today, July 12, Ornua announced an increase in its PPI for the month of June, with a value of 110% given.
The PPI is up from 106.8% for the month of May, a jump of 3.2 percentage points; this is the second consecutive price increase from April’s value of 105%.
An increase of 1.8 percentage points was recorded last month for May, representing the first increase in the PPI this year.
Prior to this, 2017’s PPI had remained relatively static, beginning the year at 105.4% before decreasing to 105% in April.