Co-ops urged to hike farmers’ prices

FARM leaders yesterday called on all co-ops to increase the price they pay farmers for milk as a result of continuing buoyant market returns.

IFA president Padraig Walshe said the price paid by milk processors is out of line with advances in the market returns.

These returns have increased by 9.6c/l (44c/gal) since last July, while most co-ops have only lifted producer prices by 1.3c/l (6c/gal).

“Dairy farmers cannot tolerate any further delay in the payment of higher milk prices,” he said.

Mr Walshe said the Irish Dairy Board (IDB) has passed back further significant improvements in EU commodity markets.

It increased butter price by €100/t and skimmed milk powder price by €350/t. This move increases returns to the co-ops by 3.7c/l (16.8c/gal) to 35.7c/l (162.3 c/gal).

IFA Dairy Committee chairman Richard Kennedy said strong market returns will continue for the rest of the year.

ICMSA president Jackie Cahill said co-op boards have an obligation to reflect strong dairy markers with a substantial hike in farmer’s milk price.

He claimed average dairy farmers (50,000 gallons) are losing about €2,200 each on April milk due to reluctance of co-ops to pass back the benefits of the stronger markets.

The ICMSA estimated that co-ops were €40 million better off for the month of April due to the succession of IDB price rises.