An analysis by IFA of the Dutch LTO monthly milk price review for the last year (Jan ‘10 to Feb ‘11 inclusive) indicates that the average Irish milk price (calculated as the average of the Kerry and Glanbia price declared to LTO) was below the average European price as recorded by LTO for 10 of those months. Across the period, the Irish price was 1.35c/l below the average European price (see graph below).
IFA National Dairy Committee Chairman Kevin Kiersey said “It is no longer good enough that Irish co-ops satisfy themselves with delivering a milk price which is roughly competitive with that paid by their nearest neighbouring co-op. Most milk producers in Europe other than our British counterparts receive significantly better milk prices than Irish farmers do.”
Mr Kiersey said the industry must factor in internationally competitive producer milk prices in planning for its future. He also called on ICOS to rapidly publish the conclusions of the KPMG industry benchmarking exercise in order to keep the focus of all co-ops on necessary decisions and actions.
“It is crucial that in planning for the implementation of the Dairy 2020 targets, the dairy industry would keep as one of its top objectives the return of internationally competitive milk prices for Irish dairy farmers,” he said.
“We need to see this factored in with the results of the ICOS/KPMG benchmarking exercise currently being finalised as part of the industry action plan for the months and years to come,” he concluded