Co-ops could pay more, claims ICMSA
Co-ops have the ability to pay a higher price for milk given the current buoyancy in world dairy markets, the ICMSA has claimed.
Commenting on the outcome of the most recent Fonterra milk auction, which saw prices recover by on average 16.9pc and by as much as 24.9pc, the association's dairy committee chairman, Pat McCormack, called on all co-op boards to raise their August milk price to accurately reflect the true returns from the marketplace.
Mr McCormack welcomed the Fonterra auction result, describing it as very good news for dairy farmers and the sector.
He pointed out that the reductions recorded in the July and August auctions had been fully recovered. "This latest auction result provides clear evidence that powders markets are now improving and there appears to be renewed demand for powders," Mr McCormack said. "Dairy farmers are recov-ering from the horrors of 2009 and need every cent to clear outstanding debts. It is nothing less than the duty of co-ops to pay a higher milk price."