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IFA: Co-ops Failed To Pass Full Value To Farmers Since May

Published on Nov 13 2018 2:50 PM in Supply Chain tagged: IFA / Co-ops / Milk Price

IFA: Co-ops Failed To Pass Full Value To Farmers Since May

Tom Phelan, IFA National Dairy Committee Chairman, said that most co-ops have failed to pass back the full value of the Ornua PPI to farmers since last May.

As a result, his Committee is seeking a commitment by co-op board members that they will hold the milk price for at least all of the winter months.

Ornua PPI

“Using the prices reported in the Farmers’ Journal Milk Price League for the main milk purchasing co-ops for May to September, a 350,000l supplier would have been better off by between €414 and €1,957 had he/she been paid the Ornua PPI milk price equivalent for the same period,” Phelan said.

“It is clear that co-ops have benefited from major milk volume increases for the August to October period, which they purchased at less than the market was returning to them at the time. Over the same period, European milk purchasers such as Friesland Campina, Arla, Lactalis and others were actually increasing payouts for farmers.”

With market signals now a little more challenging, and bearing in mind that volumes will ease seasonally, Phelan stressed that co-ops must now make a clear commitment to farmers that they will hold the milk price at current level at least for the winter months.

© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition. 

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