Reverse milk price cuts, co-ops urged

FARM leaders have called on co-ops to reverse the milk price cuts that they imposed in recent months.

The calls followed a decision by the Irish Dairy Board (IDB) to increase the skimmed milk powder (SMP) price it pays co-ops.

ICMSA president Jackie Cahill said the increase must signal the beginning of a drive by the co-ops to reverse the cuts imposed over recent months.

He said the ICMSA welcomed the IDB decision to increase the price of SMP paid to co-ops by e100/tonne, the equivalent of 4c/gallon.

Mr Cahill said set against the background of the downward pressures on milk price, the news would prove a welcome boost to the confidence of dairy farmers.

The increase was based on developments in the marketplace. In this environment, the co-ops should begin reversing some cuts on the price they pay farmers for milk.

Mr Cahill said farmers had been hit by price cuts at a time when the country is 4.62% under quota in terms of milk supplies. The results were that farmer returns would be down substantially this year.

“It is imperative that the improved returns from the market place are now passed back to farmers,” he said.

IFA National Dairy Committee chairman Richard Kennedy said there was absolutely no justification for any further producer milk price reductions by co-ops.

Mr Kennedy said co-ops have no reason to suggest further producer milk price reductions, and must now make a clear commitment to hold milk prices until the end of the year.