IFA Welcomes Milk Price Increases by Co-ops

IRELAND - IFA National Dairy Committee Chairman Richard Kennedy welcomed the price increases announced by a number of co-ops last week.
calendar icon 19 November 2009
clock icon 2 minute read

He urged all those co-ops that have yet to set their October price to follow their example, making the most of rapidly improving markets to invest in their suppliers’ confidence. He said that, while milk prices still fell far short of break even, fully justified price increases in September, October and even in November will help set the scene for improved on-farm profitability in 2010.

Richard Kennedy said: “The October milk price increases announced by Kerry, Town of Monaghan, Lakeland, and Tipperary Co-op thus far have lifted their prices over 23c/l, while Glanbia and Dairygold remain just below 23c/l.”

“Markets are motoring on, both at EU and global level, despite the decimation of export refunds by the EU Commission,” he added.

“While the milk price lifts are extremely welcome, and have contributed to making dealings with the bank manager a little easier, it remains a fact that no co-op pays a price at or above break-even as of yet,” he said.

“Some may think that lifting milk prices at this time of year, when there is little milk being produced, is not worthwhile. I say after the toughest year for incomes this generation of dairy farmers has ever experienced, it is more critical than ever,” he added.

“With November spot EU commodity returns now well over 30c/l gross, it is critical that the Irish Dairy Board and co-ops would pass back every possible increase to set the scene towards a badly needed improved profitability on dairy farms in 2010,” he concluded.

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