Co-ops offer boost to dairy farmers by raising July milk price.
Following the announcement from numerous milk processors of a lift in their July milk price, the chairperson of ICMSA’s Dairy Committee, Ger Quain said he remained hopeful that an element of the current positive market sentiment would translate back into better farmgate prices over the coming months.
Mr Quain noted that Lakelands, Kerry, Aurivo and individual co-ops in West Cork had all raised their price for July but added, “farmer attention will focus on very substantial discrepancies that exist between the final prices of those co-ops”.
The organisation’s chairman went on to say that farmers would be looking at the fact that Lisavaird is currently paying over 35 c/L while Aurivo is at 31.5 c/L.
“That’s a very substantial price gap and while ICMSA will always acknowledge those co-ops paying a rising price, we equally will always stress that the Ornua PPI is the minimum price that should be returned and a higher price must be paid if possible,” he continued.
The standard Butter/SMP mix is equivalent to 34.1 c/L translated back to the farmgate and those prices will have to be returned if initial estimates of total costs of production for 2018 are correct.
“The doubling-up of 2018 costs resulting from a long winter and drought summer will exert pressures on every dairy farmer in the country and their co-ops will have to understand that many of their suppliers are going to be at make-or-break levels this coming winter and spring, and that milk price will decide the issue either way.”