IFA asks co-ops to maintain January, February milk prices
Meanwhile, Dairy Australia said, “Current indications suggest that the balance required to bring prices back towards average levels is increasingly likely as 2015 progresses.”
The industry and farmer funded organisation said global supply continues to outweigh demand. But buyers may be returning, and the supply trend may be turning due to lower milk prices, the EU superlevy and signs of drought in New Zealand.
Dairy Australia said US milk production is surging. However, drought in California, the No 1 milk producing state, will raise feed prices and reduce milk output.
Last week, IFA asked co-ops to maintain January and February milk prices, despite slight easing of the Irish Dairy Board index for January.
IFA dairy chairman Sean O’Leary said there are two main reasons to hold prices — international markets have started a real recovery; and farmers face a very difficult 2015, with low prices, tax bills and superlevy fines.
“In this context, it is vital that co-ops would sustain current milk prices at least to help farmers manage their business over the next number of months while the recovery takes hold,” he said.
“It is equally important, at this delicate juncture, that co-ops would hold milk prices at the highest possible level in order to help maintain the integrity of milk pools.
"The strongest milk price possible given market circumstances, supported by optimum efficiencies and value added, must be a central plank to their business case to persuade farmers to sign up to Milk Supply Agreements and remain with the co-op.”
