IFA National Dairy Committee Chairman Tom Phelan today (Wed) said the move by Dairygold to pay 0.5c/l on all milk supplied during 2019 would be a welcome boost to their suppliers’ cash flow as calving begins.
“It shows IFA was correct in identifying scope for milk price increases when Dairygold and most other co-ops were paying significantly less than the Ornua PPI for much of 2019,” he said.
“For a 500,000 litre supplier to Dairygold, this end-of-year bonus on all 2019 supplies will be worth €2,500 – a significant contribution to cashflow, but also evidence that a better price could have been paid during the year,” he said.
“IFA has shown co-ops have been conservative on milk prices, especially in the second half of 2019. Milk price uplifts in October, November and December by most co-ops mean the gap with the December Ornua PPI has narrowed, though it remains negative at just under 0.5c/l. In light of continued firming of EU and global commodity returns into January, farmers will legitimately expect further milk price increases before spring,” he concluded.