In advance of milk price announcements, IFA Dairy Chairman Stephen Arthur has warned milk processors that farmers cannot afford any further cuts to milk price.
“The current price paid to farmers is not sustainable. Milk processors must do everything they can to support milk price during peak months,” he said.
“The Ornua PPI for May equates to 36.7cpl excluding the Ornua Value Payment which is estimated to be worth 2.18cpl. Markets are recovering,” he said.
“Gains were made across all commodities in the European market yesterday and despite the dip in GDT on Tuesday, commodity prices for butter and cheddar increased.”
Statistics from the Central Statistics Office (CSO) for April 2023 show a considerable reduction in peak milk supply with volumes back 3.3% compared to 2022 and 3.9% compared to 2021. This is indicative of the long wet spring that will have a further financial impact on farmers.
“We know that the global market for dairy commodities is challenging but it is recovering. We need all processors to support milk price and deliver for their suppliers in their time of need,” he said.