IFA National Dairy Committee Chairman Sean O’Leary said that Glanbia and Lakeland, in increasing their November milk price by 2c/l today (Mon), have taken a welcome step towards delivering sustainable milk prices in 2017. He urged all other co-ops, which are meeting this week to set November milk prices, to follow suit.
“It is clear that EU average dairy market returns for the month of November circa 32c/l and the November Ornua PPI increase, justifty a significant increase this month. It is vital for dairy farmers to return promptly to positive margins and to be able to plug cash flow shortages built up, especially in the last 12 months,” Mr O’Leary said.
“Co-ops should have the confidence to increase milk prices to the full extent that markets allow. At the Dairy Forum last week, chaired by Minister for Agriculture Michael Creed, we heard from industry experts that the global supply of milk was unlikely to increase significantly within the next 12 months. After two years of negative margins on farms in most milk production regions and significant increases in cow culls, volumes will be very slow to recover, and dairy markets and prices should therefore be reasonably buoyant in 2017,” he said.
“Board members in all other co-ops will be meeting this week to set their November milk price. They should not let low winter volumes dissuade them from increasing prices, as every cent passed back from the marketplace improves the viability of dairy incomes coming to peak next year,” he concluded.