All Co-ops Must Follow Glanbia and Lakeland Lead & Increase July Milk Price by at Least 1c/l
IFA Dairy Chairman Sean O’Leary has called on co-ops to follow the lead set by Lakeland and Glanbia and increase their July milk price by at least 1c/l.
He said there is scope and justification for the increase based on current market returns and the positive market outlook.
Sean O’Leary said IFA has been lobbying co-op boards for an increase of at least 1c/l in light of current market stability and analysts’ positive predictions, as well as factors such as strong butter prices, the downward trend in EU production, and recent GDT and PPI results which have been positive or stable.
He said IFA is urging co-ops to work harder to pass back as much of the dairy upturn as possible to farmers, who have faced two years of challenging cash flow and still have some way to go to rebalance their farm finances.
“Every additional cent co-ops can pass back to farmers as early as possible will make a vital contribution to their financial situation, allowing them to catch up with repayment commitments, including their merchant credit debt to the co-op. It will also be due recognition for the commitment made by farmers to SDAS, which co-ops owe them to leverage into better markets and prices.
“While co-ops may still be dealing with some contracts signed at lower price levels, those are progressively being replaced with contracts which co-ops must ensure reflect the current stronger price indices,” he said.