Farmers disappointed at co-ops’failure to raise August milk prices

Farmers are bitterly disappointed with Irish dairy co-ops who have failed to increase their August milk price to suppliers despite upward trends at global auctions, says the IFA national dairy committee chairman Kevin Kiersey.

Mr Kiersey said farmers felt let down at a time of massively increased costs. He said co-ops were being too cautious on prices at a time when the latest Fonterra auction results — +2.5% yesterday — confirmed the continued recovery in global commodity markets.

Mr Kiersey noted EU butter prices had increased by €600/t since May, SMP by €700/t and whole milk powder by over €500/t. For SMP/butter, this was equivalent to an increase in gross returns of 9c/l. Indeed, the IDB has also reflected price improvements on powder, whey and butter, with the index lifting by 6.2 points for August.

“Co-op boards must see to it that their September milk price is lifted to reflect continued improvements in markets, in order to offer farmers support who are facing an unprecedented cost-price squeeze,” Mr Kiersey said.

“Recent research by Teagasc has shown that additional costs from greater quantities of dearer bought-in feed to compensate for insufficient quantities and quality of silage could add 2.2c/l to feeding costs for spring milk producers this year alone, and 3.6c/l to winter and liquid milk suppliers,” Mr Kiersey said.