IFA National Dairy Committee Chairman Kevin Kiersey welcomed the move by Glanbia, Kerry and Town of Monaghan to increase their June milk price by 0.94c/l + VAT. He said that the decision by Glanbia to sustain this “market premium” until the end of the year, and by Kerry to backdate it to April, clearly confirmed IFA’s analysis that there has been scope for some time for a price increase based on strong market returns.
Mr Kiersey said recent comments by some co-op representatives had been particularly unhelpful: “I am glad that co-ops are no longer arguing that price increases, even if justified by market returns, would only drive farmers to worsen the superlevy situation – this was insulting and patronising to farmers,” he said.
“ It has been clear for some time that sustained strong EU and global dairy market prices justified a small additional milk price increase, especially for those co-ops involved in butter/powders, and IFA has been highlighting this fact for a number of months,” Mr Kiersey said.
“I now call on all co-op farmer board members who are currently meeting to settle their June milk price, to critically consider their own scope to pass back some more of the strong market returns for dairy products. This is in the best interest of their farmer suppliers, who are faced with rising production costs and the need to invest on farms to prepare for the post 2015 market opportunities,” he concluded.