IFA REITERATES NEED FOR 2016 CO-OP MILK PRICE COMMITMENT AS TODAY’S GDT SEES 1.9% WMP PRICE LIFT

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IFA REITERATES NEED FOR 2016 CO-OP MILK PRICE COMMITMENT AS TODAY’S GDT SEES 1.9% WMP PRICE LIFT
19 Jul 2016

IFA REITERATES NEED FOR 2016 CO-OP MILK PRICE COMMITMENT AS TODAY’S GDT SEES 1.9% WMP PRICE LIFT

Dairy

IFA National Dairy Committee Chairman Sean O’Leary today (Tuesday) reiterated his challenge to co-ops to build on decisions to hold base milk prices in June and move towards a situation of improving prices in line with market improvements as they become possible in coming months.

This, he said, was not an unreasonable request when EU dairy prices have been firming solidly for the last nine weeks, and today’s GDT, while unchanged on average, saw a significant 1.9% increase in WMP prices.

“EU dairy prices for the last two months have increased very substantially, with butter not far off 20% up, WMP 13%, whey powder nearly 16% up. Even SMP, which has been under greatest pressure in the last 18 months, has seen prices recover by 5%, admittedly still just above intervention equivalent,” Mr O’Leary said.

“By our calculations, a representative gross return for an Irish product mix is, using the EU MMO figures for 10th July, 28.6 c/l before processing costs. This would be equivalent to a farmer milk price of 23.6c/l + VAT, or 24.83c/l including VAT,” he said.

“We are clear that our request for a commitment on milk prices for 2016 is justified and necessary, both to, first sustain farmers’ badly shaken confidence, and secondly to, in time, pass back improved dairy prices to help ease farmers’ income crisis,” Sean O’Leary concluded.

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