Current dairy markets continue to justify a “significant” increase in the price of milk paid to farmers, according to the Irish Farmers’ Association (IFA).
Dairy association president Stephen Arthur said today (Tuesday May 10) that dairy farmers are owed a significant April milk price increase.
“This is more than justified, based on the profits Irish processors make from dairy products. It is vital to help dairy farmers meet rising input costs at the farm level,” said Arthur.
Dairy processors are due to announce their April milk prices in the coming days.
According to Arthur, a comparison between Ornua’s current purchase price index, which is equal to 54.4c/L, and the PPI for the same period last year shows an increase of 60%.
During the same period, farmers’ milk prices increased by just 36%, according to IFA estimates.
“Dairy processors board members need to see how much farmers are getting paid for April milk. If this is less than what Ornua is giving back, then serious questions need to be asked about how this can be justified given current input price challenges,” added Arthur.
Dairy markets allow “absolute scope” for price increases
Arthur’s comments echo those of his counterpart at the Irish Dairy Milk Suppliers Association (ICMSA), who said last week that there is “absolute scope” for an increase in the processor’s base price for milk. .
Speaking ahead of processors’ price announcements for April supplies, Noel Murphy said the price of milk has reached record highs every month this year due to continued increases in dairy markets.
“The wholesale milk market continues to post prices above 60c/L after processing costs, despite the leveling off of product demand in recent weeks,” he said.
Murphy noted: “Products sold during April have averaged over 63c/L for butter/skim powder mix and 62c/L for whole milk powder in Dutch dairy quotes.”