Co-op board members talking down milk prices ‘unfair to producers’

Dairy co-op board members have been urged by the Irish Farmers’ Association to resist the temptation to talk down milk prices.

IFA National Dairy Committee chairman Seán O’Leary said current returns, accumulated 2013 profits, and bonuses from the Irish Dairy Board all justify milk prices being held.

He said fresh data from the EU Milk Market Observatory suggested producer milk prices of 38 to 39 c/l plus Vat were comfortably justified — and that’s a cent or two more than what co-ops are paying.

He added the dividends and bonuses received by co-ops from the Irish Dairy Board in respect of 2013 trade amount to €13m, and this too would help give co-ops the comfort to hold current milk prices for some time yet.

“Talking down milk prices at this juncture is unnecessary, and it is very unfair to dairy farmers, many of whom are having to finance hefty super levy bills for additional milk production which benefited co-ops’ export revenues greatly in the last 12 months,” he said.

Mr O’Leary said the latest data available indicates that average EU dairy commodity prices have eased, except for cheddar cheese.

“IFA has calculated that gross returns (before processing costs) remain around 44c/l for most product combinations and for a representative Irish product mix,” he said.

Mr O’Leary said there is little doubt that international dairy market returns are easing. However, Irish farmers need to secure strong prices for peak milk.

This is in order to clear out their merchant credit debts and to help deal with the massive super levy fines many will have to pay over the coming months, he said.