Markets Point to a Meaningful Increase in Milk Price
Market returns on Irish dairy products means there is scope for a meaningful increase in the price paid for July milk, according to IFA Dairy Chairman Stephen Arthur.
“The Ornua PPI showed further increases in July which points to a continued demand for Irish dairy produce. Processors in Denmark and the Netherlands, among others, have already increased their August milk price; Irish processors have to follow suit,” he said.
Milk supply worldwide is lagging behind 2021. With the elevated costs of agricultural inputs showing no sign of abating, global milk supply is likely to remain constrained for the remainder of this year.
The IFA National Dairy Chair concluded, “in many parts of the country, grass growth is depressed and the cost of production continues to rise. If processors want to have adequate supplies of milk into the autumn, then they need to step forward now with a price increase to give farmers confidence that they can make a reasonable return over the next few months.”