09 Nov 2016
ORNUA PPI UPLIFT AND STRONG EU MARKET RETURNS VINDICATE IFA’S CALL FOR 3C/L ON OCTOBER MILKDairy
IFA National Dairy Committee Chairman Sean O’Leary today (Wednesday) said strong EU October average dairy returns of around 35c/l, and the 3.7 point increase in the October Ornua PPI to the equivalent of 27.9c/l including VAT are further proof that a significant increase in the October milk price is fully justified, and the continued strong trends vindicate IFA’s call for a 3c/l uplift.
“The EU average dairy product prices published by the EU Milk Market Observatory from weekly Member States’ reports have been equivalent to at least 35c/l before processing costs throughout October. That would be equivalent to a milk price of 30-31c/l including VAT,” Mr O’Leary said.
“Now the Ornua PPI has, predictably, reflected the continued strengthening of commodity prices with an increase to 95.9 points for October 2016 – the highest the index has been since June 2015,” he added.
“I am clear that our call for a 3c/l increase for October, in the context of significantly improved returns, as well as continued cash flow pressures on farms, and with an eye on setting farmers up for viable price levels for next spring, it totally justified. I urge co-op boards, who will be meeting from this week, to deliver the necessary price increase to their fellow dairy farmers,” Sean O’Leary concluded.