Creamery suppliers see static milk price

The price paid to farmers for their milk supplies should remain unchanged for May, according to the Irish Creamery Milk Suppliers Association.

Deputy president Pat McCormack said Ornua’s Purchasing Price Index, a key indicator of the value of products traded on markets in the last month, shows only a marginal and insignificant fall and demonstrated that milk price can and should be held in full confidence for May.

“If processors and co-ops decide to cut milk price for May then they’ll be disregarding the prices achieved by products traded in the last month and that’s why the decision of Lakelands to cut price by 1.5cpl [cent per litre] to 28.75cpl for May is so disappointing and inexplicable,” said Mr McCormack.

“It’s a serious blow to their suppliers and, for instance, if an equivalent cut were to be implemented across all May milk supplies by the other co-ops and processors then you’re looking at a €13m reduction in milk cheques to farmers.”

Mr McCormack said milk products that were traded in Europe in the last month returned prices equivalent to those achieved in the first four months of 2015. He said Ornua and the co-ops have repeatedly highlighted their strategy of investing in value-added products.

“This must surely be the time to show farmers the difference between commodity prices and value-added prices because we maintain the Ornua index is certainly showing it,” he said.

Mr McCormack said the idea of cutting milk prices must be studied rationally and using the data available. On that basis the price is at a fair and easily justified level.