The acting Chairman of the IFA Dairy Committee Stephen Arthur has condemned DII (Dairy Industry Ireland) proposals to change base milk price quotations.
Under the proposal, base milk price quotations will change from 3.3% Protein/3.6% Butterfat to 3.4% Protein/4.2% Butterfat.
Last week, IFA wrote to all milk processors outlining our opposition to the proposed change and requested that the letters be read out at all milk processor board of management meetings next month.
“The representative structure of milk processors is being undermined by management. Farmers have been side-lined. There is no consultation with elected representatives,” he said.
“This is a change sought solely by management, not by suppliers, and must be reversed. It’s all for optics. Processors want to look like they are paying more for milk when nothing has changed – we are still getting the same price for our milk as we did 25 years ago,” he said.
To enhance transparency, IFA is advocating that milk price should be stated on a €/kg Milk solids basis.
“The real threat from this change is that it will erode the gains farmers have made within the farm gate. Over time, we will end up supplying milk with higher milk solids, but for a lower price,” he concluded.