The payment of the maximum possible milk price for July is 'absolutely essential' and never more needed according to Gerald Quain, Chairperson of ICMSA’s Dairy Committee.
Quain has said that dairy farmers are already under exceeding amounts of pressure, and has noted that the expected substantial reduction in farm incomes in 2018 along with massive feed and fertiliser bills associated with the adverse weather conditions over the last year have done them no favours.
He has suggested that the Ornua PPI price should be the minimum price set for July.
Drought & Budget Cuts
“With most Co-ops behind the June Ornua PPI which was 32.8 cents per litre, dairy farmers need and expect that the July milk price should at a minimum come up to this level,” he said.
“While acknowledging that dairy markets have been somewhat uncertain in recent weeks, given the drought situation not only in Ireland but also across the EU and indeed Australia, global milk supplies will fall and at EU level, there is a strong reason to believe supplies will be severely hit by drought conditions and this should and will boost the market for dairy products”
He added that cash-flow is “absolutely critical”, and the best way for Co-ops to boost cash-flow is to pay the “maximum possible price”.
He highlighted the group of milk processors across the EU that have increased the July milk price including Arla, Lactalis, Sodiaal and Friesland Campina.
“This is a clear indicator that they have confidence in the marketplace,” he added, “and given the circumstances, Irish dairy farmers find themselves in, it is absolutely essential that our processors at the very minimum come to the Ornua milk price level which was 32.8cpl for June.”
© 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.