Pressure mounting for farmers to get a milk price of 30c/L
Published 08/11/2016 | 15:00
Pressure for a minimum milk price of 30c/l is growing as world markets surge to their highest levels in over two years.
The Global Dairy Trade price index hit its highest point since mid 2014 and Ornua's PPI Index recorded the third consecutive monthly increase at the beginning of October to 92.2. A further increase is expected to be confirmed later this week.
The latest increase means that the GDT has jumped by 59pc since March.
ICMSA Dairy chairman Gerard Quain said that "based on market returns, there is absolutely no reason why the milk price could not be set at 30c/l for October".
Following a meeting of the IFA's dairy committee on Friday, Sean O'Leary said that the IFA "will lobby all board members for a 3c/l October milk price increase" over the coming days ahead of board meetings to set the price which are scheduled to be held by mid month.
Processors are remaining tight-lipped on their price recommendations being prepared for the upcoming board meetings.
However, they are expected to factor in a requirement to retain some of the increases from the market place to replenish reserves which have been depleted by price supports over the past 18 months.
However, the farmer board members are under pressure to ensure balance in the allocation between pay-out in milk price and rebuilding reserves.