07 Sep 2016
ORNUA PPI LIFT, THIRD STRONG GDT AND RISING EU MARKETS POINT TO MEANINGFUL PRICE INCREASESDairy
IFA President Joe Healy today (Wednesday) said that the Ornua PPI increase to 85.8 points, equivalent to a farmer milk price for August of 24.3c/l incl VAT, Is the latest sign after the third strong GDT increase in a row, and significant improvement in EU average dairy prices that farmers were right to expect significant milk price increases for their milk this autumn.
He urged co-op board members, who will be meeting from this week to decide on the August milk price, to pass back every last cent possible this month and beyond.
“The milk price equivalent of this week’s GDT butter and SMP average price has risen to 32.6 Euro cents/l gross, or 27 to 28c/l net of processing costs. The EU average returns reported by the EU MMO for week ending 28th August for the main dairy commodities relevant to the Irish product mix is equivalent to 28.5c/l incl. VAT, after processing costs,” he said.
IFA National Dairy Committee Chairman Sean O’Leary added, “Even allowing for a level of forward selling at lower prices, these continued return improvements will make a big difference to co-ops in their ability to pay higher milk prices. Farmers will be rightly expecting meaningful increases in the milk price for August and beyond, and the IFA National Dairy Committee will be lobbying board members accordingly,”