Co-ops must share market returns with their suppliers

Following the increase in the Irish Dairy Board Price Index to 130.3 — a record high — and based on the continuing improvement in the marketplace for Irish dairy products, an increase in the milk price to at least 40 cents per litre for August milk is easily justified.

Processors and co-ops must consider a retrospective ‘top-up’ payment in lieu of their failure to pay 40c per litre for July milk — a price that is also equally justified. Co-ops and processors will simply have to stop dragging their feet in relation to milk price increases. Quite apart from the fact that this price is fully justified, farmers need every cent possible at this time to meet the bills and financial pressures that have built up over the last 12 months.

Co-op boards will have to insist that the full benefits of the buoyant marketplace are immediately passed back to their suppliers, and this means that a price of at least 40c per litre should be paid for August milk, with a retrospective payment for July representing the fact that they demonstrably should have paid 40 cents per litre for that month and inexcusably did not do so.