Kennedy criticises milk processors

IFA National Dairy Committee chairman Richard Kennedy has attacked milk processors for under-paying farmers for raw milk.

Mr Kennedy said milk processors had been very conservative in their milk price increases relative to the actual market Even allowing for the different product mixes, all co-ops could easily pay at least 33c/l plus VAT for June milk. Dairygold is the only one to date to cross the 31c/l line, an increase of 2.21c/l (10c/gal) over their May milk price.

Mr Kennedy said that Glanbia, Kerry and Town of Monaghan decided their June milk price too early.

“Most of the co-ops that have called their June milk price so far have limited their price increases to matching one-another,” he said, “with little regard for the fact that commodity returns have increased by 17.4c/l (79.2c/gal) in the last 12 months.

“We have clearly shown that all dairy products prices have been lifted by the commodity price increases. Even casein and cheddar cheese, which had lagged behind, are now catching up, and their prices will strengthen much further in coming months,” said Mr Kennedy.

“Co-op board members must stop looking over their shoulders to do no more than the next co-op, and instead ensure their suppliers are paid the maximum the historically strong markets allow.”