IFA National Dairy Committee Chairman Tom Phelan today (Friday) said with weather the main driver of income volatility in 2018, it was disappointing that many co-ops had missed the opportunity to increase June milk prices. This, he said, would have given dairy farmers’ cash flow a badly needed boost in the month which sees the largest volumes produced.
“At a time when farmers continue to struggle with the weather-related consequences on fodder availability, despite recent light rains, co-op boards need to redouble their effort to reflect the average EU returns for July, which at around 32c/l + VAT were around 1 c/l above the milk price paid by most of them for June,” Mr Phelan said.
“Many co-ops, including Glanbia, Dairygold and Kerry have introduced deferred and/or interest free credit for feed and fertiliser purchases, and some like Dairygold and Kerry have also offered rebates for Summer purchases of those inputs. These important supports will be appreciated by farmers,” he said.
“However, I am very clear that co-ops paying the highest milk price that market returns allow is always the best “support” for farmers. All co-ops must work hard to deliver this in this exceptionally challenging year,” he concluded