Farmers urge co-ops to hold price
He said poor prices are being masked by big volumes and strong constituents. But even with unchanged prices, the cash- flow situation will worsen dramatically next spring because of higher costs and lower butterfat and protein.
Mr O’Leary said farmers have taken a huge milk price hit of 13c/l in 18 months. This 33% fall is equivalent to a decimation of the margin, a 93% fall.
“We have recognised throughout the year that co-ops have supported milk prices, and in this first year after quota, it is farmers’ legitimate expectation that the businesses they own would continue to do so to help them cope with exceptional and new volatile circumstances,” he said.
Irish Creamery Milk Suppliers Association president John Comer said the reductions in milk price over recent months have been masked at this time of year.
But this support will be well and truly gone when cows calve down next spring and the stark reality of milk price reductions hits farmers.
Mr Comer said a lot of the problems affecting farmers all over the EU are directly linked to political decisions. Farmers cannot be expected to ‘pick up the tab’ for this political ban into next spring.
“Further actions are needed to support the market and, at a minimum, intervention price needs to be increased,” he said.
Mr Comer said one practical way the Government can help farmers in the event of a spring 2016 ‘crunch’ is to force financial institutions to offer real rather than token support to their farmer customers.
One option is to link repayment levels to milk price and bring Irish interest rates into line with EU norm, he said. Irish Co-operative Organisation Society president Martin Keane called on all involved to take a sensible approach.
