SLIGHT LIFT IN EU DAIRY MARKETS, IDB INDEX AND EUROPEAN MILK PRICES SHOULD ENCOURAGE CO-OPS TO CONSIDER END-YEAR BONUS – KIERSEY

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SLIGHT LIFT IN EU DAIRY MARKETS, IDB INDEX AND EUROPEAN MILK PRICES SHOULD ENCOURAGE CO-OPS TO CONSIDER END-YEAR BONUS - KIERSEY
09 Nov 2011

SLIGHT LIFT IN EU DAIRY MARKETS, IDB INDEX AND EUROPEAN MILK PRICES SHOULD ENCOURAGE CO-OPS TO CONSIDER END-YEAR BONUS – KIERSEY

Dairy

IFA National Dairy Committee Chairman Kevin Kiersey today (Wed) said that slight improvements in cheese, whey powder and stable powder returns had led a number of European co-ops to announce milk price lifts.

Kevin Kiersey said this had also fed into a second slight improvement in the Irish Dairy Board new Purchasing Price Index to 107.6 for product traded in October (from 107 for September, and 106.9 for August). He urged co-op boards, who would be meeting in coming days all around the country, to examine the scope they have to pay an end year top-up to suppliers.

He said, “Friesland Campina have just announced they would lift their November milk price by 0.25c/kg (0.245c/l approximately) to 37.25c/kg for milk at 4.41% fat and 3.47% protein. This follows similar lifts by the main milk purchasers in Belgium, Germany and Denmark.”

“While these recent improvements are small, it is clear that over the 2010/11 period, the majority of dairy processing co-ops have been able to improve their profit margins – and this was crucially needed to provide for vital investment, especially after the terrible income crisis of 2009,” he added.

“However, I believe this latest development should encourage all co-ops in Ireland to look closely at their scope to use a small amount of those improved margins to pay suppliers a fully justified end of year top-up,” he concluded.

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