There is scope for a “jump in milk price” to “reflect current market conditions”, according to the Irish Farmers’ Association (IFA).

In light of the positive auction from the latest Global Dairy Trade (GDT) auction yesterday (Tuesday, December 15), which solidifies the upward trend in milk prices, IFA Dairy Committee chairman Tom Phelan said it’s imperative that remaining milk processors increase price for the month of November.

“The IFA adjusted PPI [Purchase Price Index] for November was 33.16. Our estimates for the latest GDT auction suggest a 2c/L increase in milk price in the past month,” he said.

There is scope for a 1c/L jump in milk price to reflect current market conditions.

“It must also be noted that the publication of the Ag-Climatise consultation document and the enhanced nitrate derogation requirements will increase costs for dairy farmers,” the chairman noted.

“This milk price rise must remain consistent to give farmers the opportunity to meet those costs. It’s about time the marketplace delivered for sustainable milk production,” he concluded.

Yesterday’s GDT auction, the final event of 2020, concluded relatively strongly, with increases seen across all products offered and a 1.3% rise in overall index noted.

Lasting one hour and 57 minutes, yesterday’s auction saw 169 participating bidders battle it out across 14 rounds, with 108 winning bidders emerging.

A total of 31,701MT of product was sold on the day.