Reacting to the latest Ornua PPI (Purchase Price Index), the Irish Farmers’ Association (IFA) Dairy Committee chairman Stephen Arthur said that markets can sustain an increased price for March milk.
The Ornua PPI has risen for the month of March, once again driven by stronger butter and powder returns, the Irish dairy exporter has confirmed. The PPI is 112.6, and is up from 108.5 in the previous month.
When adjusted to include the Ornua Value Payment, this is the equivalent of 35.9c/L, Arthur added.
‘Processors must match Ornua PPI this month’
“While many processors will be removing or reducing seasonal milk bonuses this month, there is no excuse for milk price to fall as a consequence,” Arthur continued.
“Processors are very quick to reduce milk price when markets aren’t as strong, but very slow to pass on returns when markets are positive.
“Milk processors must match the Ornua PPI this month. Farmers must get their fair share of the buoyant market.”
The IFA added: “Future milk expansion and growth has come into sharp focus for dairy farmers since the announcement of the Glanbia peak management supply policy.
“With greater environmental commitments and restrained supply, farmers must get the maximum return from the marketplace to sustain their businesses.”
‘Most base milk prices for March should be above 34c/L’
Meanwhile, the Irish Creamery Milk Suppliers’ Association (ICMSA) has said that milk processors and co-ops should ensure that base milk prices for March supplies are above 34c/L including VAT.
ICMSA Dairy Committee chairman Ger Quain welcomed the bounce in the index of 1.5c/L.
Quain said this increase was fully expected given the surge in wholesale milk prices since the start of 2021, adding that it confirms that dairy markets are continuing to move forward at pace.