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Farmers to challenge co-ops on milk price



Following the November meeting of the IFA National Dairy Committee, its Chairman Tom Phelan said members are angered by co-ops’ continued lagging behind European milk prices and dairy returns. 

  He said National Dairy Committee members would seek to organise meetings with their co-ops in the next couple of weeks to look for answers on the outlook for milk price for year-end and for spring 2020. 

  “Co-ops have used farmers’ good constituent performances to camouflage price cuts, and now hide behind the seasonally higher butterfat and protein levels to hold low milk prices,” Mr. Phelan said.

  “Milk prices this back end will condition farmers’ incomes next spring. Assuming no price changes from the October level, the constituent difference between October and March will be around 3.8 cents per litre – that would be a cash-flow crippling €1,600 shortfall on the March milk cheque.

  “There is no good reason for co-ops’ excessive caution on milk prices. The global supply/demand balance remains positive and powder prices continue to strengthen. EU indicators, including the Ornua PPI for October at 29.9c/l + VAT would all suggest prices of at least 2 c/l above what the main payers have announced for the same month,” he said.



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