Processors Have to Increase Milk Price to Reflect Strong Markets
IFA Dairy Chairman Stephen Arthur said the latest PPI is further confirmation of strengthening dairy markets.
“Now is the time to increase milk price. Processors need to step up and deliver a higher price. Input costs are soaring and farmers need a rise in price immediately,” he said.
Following the 15% rise in the GDT on Tuesday, the Ornua PPI for February is 108.5, up from 107.3 the previous month.
The increase is driven by stronger butter and powder returns, which was also seen in the GDT. When adjusted to include the ‘Ornua Value Payment’, the PPI equates to 34.99cpl.
“Seasonal bonuses should not distract from the base price. The base price has to rise now to reflect market returns,” he said.