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.