Butter price rise seen as tip on milk
The IDB increased the butter price by €75/t. This improvement was made in view of the better-than-expected performance of butter sales in August.
It brings the IDB skim milk powder-butter price for butter sold in August up by 0.33c/l to 28.9c/l.
IFA dairy chairman Michael Murphy said that despite earlier fears, butter markets were obviously still operating substantially above the new intervention price.
He said this, and the good performance from other products, vindicated his view that producer prices should be held.
“Kerry and Town of Monaghan have now both made a positive move by announcing early they would hold the August price,” he said.
Mr Murphy called on all co-ops to do the same.
He said there was no justification to reduce prices at this point.
“Production costs have been skyrocketing, while the value of output has been dropping steadily.
“Dairy farmers have lost between 15% and 30% of their income in the last three years,” he said.
Mr Murphy said in future years co-ops could not look at producer price cuts as an alternative to a proper strategy of co-ordinated cost cutting and value adding.
“Using farmers as the soft target will put many of them out of business,” he said.
