IFA National Dairy Chairman Stephen Arthur says that milk processors must pay more than 36cpl for July milk.
The Ornua PPI for July equates to 35.5cpl. However, when the figure is adjusted for the Ornua Value Payment worth 3.22cpl (including VAT), the milk price equivalent is 38.72cpl. A sustained milk price above 36cpl is achievable from the marketplace, and farmers should receive it for the rest of 2021.
He said, “The EU and NZ futures markets have returned price rises in the past week for butter and SMP with the GDT showing increases of 3.8% and 1.5%, respectively in these two key commodities for Ireland”.
“Farmers have been faced with a difficult season of poor grass growth and rapidly rising input costs. It’s high time farmers got what the market is returning; we have to balance our books too.”