Slump in milk price worse than 2009 lows
Published 19/04/2016 | 02:30
Dairy farmers are now worse off than during the last milk price crash in 2009, when milk prices hit lows of 19c/l.
It comes as Glanbia slashed over 8pc off its March payout to bring the basic price to just 22c/l when VAT is included.
The co-op will top up this price by 1c/l from its own coffers, along with another 1c/l from cash bonuses from Ornua.
However, an analysis of the figures from the CSO shows it calculates from 2009 to 2015 the farm input costs rose 23pc, meaning that farmers need to receive over 23c/l to be on par with 2009.
While fuel prices decreased significantly in the last 18 months, much of this fall has been captured in the 2015 data.
Dairygold suppliers will be anxiously awaiting word from their co-op's board meeting later today to see if their society follows Glanbia's lead on price cuts. Last month, it cut its price to 24c/l which mirrored Glanbia.
They will be hoping that CEO Jim Woulfe opts instead to stick with neighbouring processors Kerry and Carbery.
Both co-ops decided to hold March milk prices at 25c/l and 27c/l, respectively. Monaghan's LacPatrick has also held its March milk price.