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IFA urges all co-ops to follow suit as milk price to suppliers increases

By Ray Ryan, Agribusiness Correspondent - Friday, November 20, 2009

MILK price increases announced by a number of co-ops have been welcomed by the Irish Farmers Association.

National Dairy Committee chairman Richard Kennedy urged all those co-ops that have yet to set their October price to follow their example, making the most of rapidly improving markets to invest in their suppliers’ confidence.

He said while milk prices still fell far short of breakeven, fully justified price increases in September, October and even in November will help set the scene for improved on-farm profitability in 2010.

"The October milk price increases announced by Kerry, Town of Monaghan, Lakeland, and Tipperary Co-op so far have lifted their prices over 23c per litre, while Glanbia and Dairygold remain just below 23c/l," he said.

Mr Kennedy said markets are motoring on, both at EU and global level, despite the decimation of export refunds by the European Commission.

"While the milk price lifts are extremely welcome, and have contributed to making dealings with the bank manager a little easier, it remains a fact that no co-op pays a price at, or above, breakeven as of yet.

"Some may think that lifting milk prices at this time of the year when there is little milk being produced is not worthwhile. But after the toughest year for incomes this generation of dairy farmers has ever experienced, it is more critical than ever," he said.

Mr Kennedy said it is critical that the Irish Dairy Board and co-ops would pass back every possible increase to set the scene towards a badly needed improved profitability on dairy farms in 2010.

A public meeting to discuss the crisis facing family dairy farms will be held tonight at the Parkway Hotel, Dunmanway, Co Cork.

The meeting has been organised by the National Milk Rights Group, headed by chairman Donie Shine, Mallow, and Rena Phelan, Mullinahone, Co Tipperary, secretary. Mr Shine said the present situation in dairying is leading to a meltdown of family farms and associated employment in rural areas.

"As the time has come to protect family farms, sustainable solutions will be presented to the meeting for discussion and approval," he said.

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