The reduction of 1.6 points to the June Ornua Purchase Price Index (PPI) still leaves room for the majority of co-ops to increase their June milk prices by 1c/L, according to the Irish Farmers’ Association (IFA).
IFA dairy chairman Tom Phelan gave his reaction to Ornua’s PPI announcement earlier today, Tuesday, July 9, of an index set at 105.7, which is equivalent to a milk price of 31.6c/L including VAT.
Commenting on the matter, Phelan said: “Apart from the west Cork Co-ops, all milk purchasing co-ops have undershot the Ornua PPI in the milk price they have returned to farmers for most of the last seven months.
“Global milk supplies are not growing at the moment, and are falling dramatically in some of the main regions, such as New Zealand, the US, Australia and Argentina. Also, intervention stocks of SMP (skimmed milk powder) are now totally empty,” he said.
“Demand is relatively good in Asia, South America, the EU and the US,” he added.
Concerns over the potential impact of economic and geopolitical factors that have yet to materialise is not a good enough reason to deny Irish farmers for several months a milk price fully justified by market returns.
“Co-ops will be meeting from this week to decide on their June milk price, and I maintain that most of them should increase their price by at least 1c/L, in fairness to their suppliers,” he concluded.