Strong Markets Justify Increase in Milk Price
IFA Dairy Chairman Stephen Arthur said that dairy farmers are due a significant increase in the April farmgate milk price.
“This is more than justified based on the returns Irish processors are now getting for dairy products, and it’s vital to help dairy farmers meet the spiralling cost of inputs at farm level.”
Stephen Arthur said European dairy commodity markets are very strong.
Cheddar cheese is now trading at over €5,500 per tonne. In the last 12 months, butter has risen by 69%; Skimmed Milk Powder by 62%; and Whole Milk Powder by 64%.
However, IFA estimates that the milk price paid to farmers has only increased by 36% in the same period.
“Globally, milk supply is back 1% year to date. With high input costs, it’s forecasted that there will be no growth in world supply in 2022. Security of supply will be an issue as the year progresses.”
“Board members of dairy processors must look at what they are paying farmers for April milk. If this is less than what the markets are returning, then serious questions must be asked on how this can be justified given the input challenges dairy farmers are facing,” he concluded.