The 29 members of the IFA National Dairy Committee, drawn from each IFA County Executive, met today in Dublin to examine the outlook for dairy markets, and the prospects for further milk price increases. Chairman Sean O’Leary said: “It is very clear from all current available dairy market indices, whether they national, EU or global, that there is room for a 2c/l milk price increase for May milk”.
“Milk prices have stagnated since February, despite the fact that EU market returns as reported by the EU Milk Market Observatory have increased by 2.85c/l over that period, driven especially, though not exclusively, by fast rising butter prices,” he said.
“At today’s Committee meeting, members clearly said that just because milk prices had risen above the 30c/l mark did not give co-ops latitude to divert any increased returns exclusively towards rebuilding the co-op’s balance sheet. Members made it very clear that their own balance sheets had a way to go to revert to a sustainable situation, and further milk price increases were both justified and necessary,” he said.
“Co-op boards will meet from tomorrow Tuesday to decide on the price to be paid for May milk, and the Committee has been lobbying board members to ensure that they pass back the significant improvements in returns – the expectations among farmers are that there would be a 2c/l milk price uplift for May milk,” he concluded.