IFA national dairy chairman Tom Phelan has said today (Thursday) that co-ops owe it to their suppliers to reflect in their May milk-price decisions the 4.8c/l increase in EU returns and the several points higher than expected 105.4 percentage points May Purchase Price Index (PPI).
“The time for price cuts is now over,” Tom said. “While cuts in supports by both Lakeland and Glanbia are disappointing, the base price must reflect the higher EU returns and PPI, which Glanbia’s doesn’t. Over the coming days, co-ops must first work on holding their payout for the month, and then plan for improved prices for June’s milk onwards.
“IFA has highlighted how much improvement has occurred in the average EU market prices for the commodities relevant to the Irish product mix. Since January, returns for this product mix have increased by nearly 5c/l – more than half of the decrease of late 2017,” he said.
“All indicators would suggest that May should mark the end of price cuts, and, in this respect, we urge co-ops to make the right call and do right by their suppliers by reflecting the reality of improved market returns.
“For next month, I put all co-ops on notice that IFA member suppliers will expect them to start leveraging the improved returns they are getting from the marketplace. Farmers will be, legitimately, expecting higher June milk prices,” he concluded.