Dairy co-ops in Ireland are being urged to continue increasing milk prices for August and later supplies against a background of butterfat scarcity and strong global demand.
The Irish Farmers Association made the call after Arla, the Danish dairy giant, increased its September milk price by a further 1c/kg to 38.3c/kg (around 34.6c/l at 3.3%/3.6%).
IFA National Dairy Committee chairman Sean O’Leary noted butter prices were continuing to rise.
He said returns from EU commodities for the middle of August amounted to around 40.7c/l before processing costs, despite weaker skim milk powder prices.
Global demand is strong, with European hot weather promoting the consumption of ice-cream and China’s rocketing dairy demand growth is continuing.
Mr O’Leary said dairy prices are set to remain strong this year. Making further milk price increases are well and truly justified.
“Between August and December, Irish dairy farmers produce between 35% and 40% of their total annual supplies. Every cent passed back for August milk and beyond will make a significant positive difference to dairy farmers’ financial situation after three years of cash stagnation,” he said.
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