Co-ops Can’t Continue Dragging Their Heels when Everything Points to Higher Milk Prices

Speaking as Ornua lifts their PPI for the third month running, IFA National Dairy Committee Chairman Tom Phelan today pointed out that, in the last few days, the following has been reported:

• Ornua’s PPI for November has risen a further 1 point to 106.6 points or 31.9c/l incl VAT;
• Fonterra have increased their 2019/20 payout to a mid-range point of NZ$7.30/kg MS (equivalent to 31.23c/l incl VAT at Irish standard solids);
• GDT SMP prices have reached their highest level in 5 years at US$3068/t, and WMP the highest in 3 years at US$3331/t;
• Friesland Campina have lifted their December price €0.91/100 kgs to €36.41/100 kgs (32.62c/l incl VAT at Irish standard solids);
• EU average SMP prices have lifted to €2500/t for the first time since August 2014;
• EU average butter prices have risen €30/t to €3660/t in the last week;
• EU average raw milk prices have increased 4.5% since July;

“All these facts point to steadily improving returns from the market place justifying better farm gate milk prices, because there is a good balance between slower milk supply with low stocks, and solid demand growth,” Mr Phelan said.

“There can be no justification for Irish co-ops not to move on the November milk price, when the lowest payers are nearly 3c/l below the Ornua PPI,” he said.

“This month, our message to co-op board members is clear: stop dragging your heels on milk prices, and pay farmers the extra 1 to 2c/l on November milk that their cash flow is crying out for,” he concluded.