Time is Up for Processors on Milk Price

IFA Dairy Chairman Stephen Arthur said it’s about time processors paid a milk price that reflects what the market is returning.  

The Ornua Purchase Price Index (PPI) for June has risen by over three points to 119.9.

When adjusted to include the Ornua Value Payment, the IFA adjusted PPI indicates an equivalent farmgate price of 38.11cpl. However, farmgate milk prices continue to lag substantially behind this.

In the past 12 months, the Ornua PPI has only dropped once, with 11 months showing gains in market returns. Since the start of 2021, the adjusted Ornua PPI has risen from 33.88 cpl in January to 38.11 in June.

ORNUA PPI107.3108.5112.6115.1116.8119.9
IFA ADJUSTED PPI – cpl33.8834.9935.9036.6536.9938.11

“While the PPI continues to return solid milk prices, the processors are reluctant to pass it back to farmers. It’s about time the processors reflected what the market is paying,” he said.

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