IFA wants dairy co-ops to pass on milk price increase to suppliers

Dairy co-ops should already be factoring in a rise in the price they pay their milk suppliers on foot of a lift in overseas markets, says IFA dairy committee chairman Kevin Kiersey.

Addressing yesterday’s Virginia Dairy Show in Cavan, Mr Kiersey cited rises in Dutch auction prices for all dairy commodities, including leaps such as 7% each for WMP and SMP, 14% for butteroil, and 15.4% for milk protein concentrate.

Overall, the Fonterra average auction price, has risen by 3.5% and 7.8% this month. More importantly, the fall in US dairy output caused by its drought will keep sustained upward pressure on global prices.