MIND THE GAP – FARMERS’ JOURNAL KPMG MILK PRICE REVIEW

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MIND THE GAP - FARMERS’ JOURNAL KPMG MILK PRICE REVIEW
05 Jul 2018

MIND THE GAP – FARMERS’ JOURNAL KPMG MILK PRICE REVIEW

Dairy

IFA National Dairy Committee Chairman Tom Phelan has said that in participating voluntarily to the Farmers’ Journal/KPMG 2017 Milk Price Review, co-ops are contributing to providing unique milk price transparency, which is the envy of our European colleagues. He commended all co-ops for their continued commitment to the Review year after year.

“The IFJ/KPMG Milk Price Review is the most robust measurement of the true average milk pay-out to farmers by each co-op, as it simply divides up the creamery milk purchasing expenditure into the volumes of milk purchased, excluding liquid milk,” Mr Phelan said.

“For farmers, though, at a time when base milk prices have fallen by at least 5c/l since September, the 2017 Review is mostly of historical interest. I call on the Farmers’ Journal and KPMG to speed up the process and aim to have the Review published by the end of January from next year,” he said.

Milk price gaps

“There has been disappointingly little progress in addressing last year’s 6c/l gap between top and bottom payers: this year, it is 5.5c/l. But developments this year so far show co-ops are again potentially on the path to greater divergence. Co-ops have to work a great deal harder to do to increase milk prices and narrow the costly price gaps – starting with the June milk cheque.

“I would expect co-op boards at their next meeting to review their long term milk pricing plan, and for the shorter term to be sure to pass back a price increase of at least 1c/l for June milk which current market returns clearly justify,” Tom Phelan concluded.

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