Dairy board accused of ‘switching off the light’ on milk prices

THE ICMSA claims the Irish Dairy Board’s (IDB) plans to express its monthly milk price index as a percentage rather than price per litre will damage transparency for farmers.

ICMSA dairy committee chairman Pat McCormack said the IDB is “switching off the light” on milk data and prices. He said: “The information being issued needs to be clear and to be quantifiable. The IDB’s approach may be understandable in issuing information to the industry as a whole, but we are here to protect the interests of farmers.

“Effectively, the IDB are ‘switching off the light’ on milk price data and facts. This is a wrong move and one that is not acceptable to ICMSA. Whatever about the shortcomings of the butter and skim milk ‘on-account’ prices they are actual figures on the real market.”

Mr McCormack said farmers have a right to know how the IDB and co-ops are performing compared to others in the international market.

“The IDB index, as now proposed, would cause confusion and be the source of endless disagreement on the exact returns from the market place. Such a regressive move is not acceptable.”

“Logic and experience tells us that there should be greater price transparency — not less. A price index showing only percentage changes will not — and cannot — give the direct information that will enable farmers to measure their own co-op’s perfor-mance in terms of cents per litre.”

When releasing details of this new index, the IDB said the change would allow it to include prices for cheese and WMP, thus giving its members a more complete picture.

Meanwhile, Mr McCormack said solid market returns have created a strong argument for an increase in the milk price paid to dairy farmers. He estimates that an increase of 1.5 cent per litre is justified on the present price of 33cpl.

He was critical of the recent trend where processors seem reluctant to move in line with market improvements and noted that prices paid by co-ops at present are falling behind the returns from the markets.

* AEOS DEADLINE: Agriculture Minister Simon Coveney is advising farmers that as a concession to facilitate late applications finalised this weekend, AEOS applications may be presented to local offices of the Department which are accepting Single Payment Scheme applications by close of business on May 16. Any application presented to a local office after Monday will be deemed ineligible. Applications sent by post must be submitted directly to Johnstown Castle and not to local offices of the Department.