IFA urges co-ops to follow West Cork

Dairy farmers are hopeful processors will follow the lead of the four West Cork co-ops which have increased their milk price to the highest level since May 2015.

IFA dairy chairman Sean O’Leary said the announcement by Carbery that it would increase its payout to the West Cork co-ops by 1.5c/l means the co-ops would be paying 29c/l to 30c/l including Vat, thus making them the first of any co-ops to reach that level since May 2015.

Mr O’Leary said that the decision by Glanbia to increase the price by 2c/l to 28c/l (including Vat and a 1c/l co-op top-up) also established the fact that co-ops could increase by more than 1c/litre in October.

“We have been very clear in our analysis that co-ops can do considerably better than 1c/l on October milk when they meet this week to set the milk price,” said Mr O’Leary.

“I would remind them that the Ornua purchase price index justifies at least a 2c/l increase, while the EU average dairy market returns are equivalent to a milk price of at least 30c/l.”

IFA members who supply to Lakeland are angry that the Cavan co-op has only added 1c/l to its October milk price.

The Lakeland price is over 1c/l short of the Ornua PPI for October; IFA also notes that EU average dairy product returns for October are equivalent to a 30c/l farmgate price. The IFA says that Lakeland suppliers had justifiably expected more.

“Big increases for October milk are totally justified,” said Mr O’Leary.

“I strongly urge co-op boards to deliver the necessary price increase to their fellow dairy farmers.”