‘Ongoing dairy challenges’ see no immediate reintroduction of Ornua milk levy

The Ornua Board has decided that no immediate reintroduction of the monthly Ornua milk levy, which was suspended on May 1, 2016, will take place.

The levy takes 0.14c/L off each litre of milk produced.

It was agreed at that time that the Ornua Board would reconsider the suspension of the milk levy when the Ornua Purchase Price Index returned to 103 (the equivalent of 30.c/L, including VAT) for three consecutive months.

In January, the Ornua PPI hit 105.4 points, up from the 103.8 points it reached in December. It was the seventh consecutive increase in the PPI.

However, the Ornua Board has decided, in recognition of the ongoing challenges being experienced by Irish dairy farming families due to the recent global dairy market downturn, that a more sustained period of a sustainable milk price would be required before a reintroduction is considered.

The Ornua Board will reconsider the suspension of the milk levy, again, in autumn 2017.

Through the milk levy, Irish dairy farmers directly contribute to the Kerrygold brand and the marketing development of Irish dairy products in over 110 countries.

January milk prices

Meanwhile, co-ops have started setting January milk prices, with Glanbia and Lakeland Dairies setting prices last week.

Glanbia has confirmed that it will pay its milk suppliers 31c/L, including VAT, for January manufacturing milk supplies.

Glanbia Ingredients Ireland (GII) has increased its base price for January by 1c/L to 31c/L including VAT for manufacturing milk at 3.6% fat and 3.3% protein.

Lakeland Dairies has also increased its January milk price by 1c/L, the co-op confirmed.

Lakelands suppliers will receive a base price of 31.28c/L, including VAT, for January milk.

Kerry has announced that it will be increasing its milk price by 2c/L for January, bringing its milk price to 31c/L including VAT for the month.