Dairy chairman insists co-ops can hold milk price at current level

CO-OPS can afford to hold their present milk price despite a weakening in overseas markets, according to IFA national dairy committee chairman Kevin Kiersey.

He said Irish co-ops had improved their margins significantly in 2010 and 2011, and most could afford to hold milk prices through the spring. The current 12-month rolling average is 34-35.5c per litre.

“Co-ops generally collect relatively little milk this time of year, and will collect even less this year because of superlevy restrictions,” said Mr Kiersey. “Most can afford to hold milk prices over the coming months because they have improved their margins in 2010 and 2011 at times when strong dairy prices coincided with strong milk supplies.