As market improves, co-ops under pressure to increase milk prices

THE country’s dairy co-ops are coming under pressure to increase the milk prices they pay their farmer suppliers as the world market returns improve.

Irish Farmers Association Dairy Committee chairman Kevin Kiersey said the latest dairy trade auction results from Fonterra, the global New Zealand processor, was the clearest sign yet the market recovery that started a few weeks ago was far more than a flash in the pan.

He said as the Irish Dairy Board increased its March skimmed milk powder/butter payout by 0.43c/l, co-ops should increase their milk prices for that month to at least 27c/l. It was also both realistic and necessary for the co-ops to further commit to lifting milk prices to at least 28c/l + VAT before peak production begins in May, he said. Mr Kiersey said the increased Fonterra prices will help make European dairy products more competitive on the world market. It will also help lift their prices further before summer and this justifies further milk price increases well before peak.