Co-ops urged to follow EU-wide dairy price rises

IFA president Joe Healy has urged Irish co-ops to follow the 5c per litre rise in EU dairy market recovery, equivalent to a farmgate milk price of around 26cpl.

Mr Healy said EU dairy commodity returns rose by 5cpl in the last three months to an early August level equivalent, after 5c/l processing costs, to a farmgate milk price of 25.38cpl +Vat, or 26.7cpl including Vat.

He called on those co-ops that had yet to decide on the July price, especially those at the bottom of the league, to first follow the Lakeland, Glanbia, and Arrabawn lead by increasing July prices, but also for all co-ops to budget for significant further milk price increases for August and beyond.

“Co-ops can be confident about increasing milk prices: The long-awaited dairy market recovery has really taken hold,” said Mr Healy.

“It reflects much slower growth or even decreased milk production in Europe, but also globally, and relatively healthy demand growth despite the Russian ban and lower oil revenues.

“NZ business bank ASB Markets have predicted this week a 12% to 15% increase in this afternoon’s global dairy trade price for whole milk powder, based on the evolution of NZX futures in the last few days.”