Farm Ireland

Monday 19 February 2018

Fury at cut in milk price

THE Irish Dairy Board (IDB) has reduced its prices for skim milk powder by €100/t, which equates to a reduction of 4.25c/l on all supplies bought by the IDB last month. Butter prices were unchanged.

Overall, the IDB's Purchase Price Index fell from 109 to 106.9 for last month.

The ICMSA reacted angrily, saying that there was no basis for any reduction in dairy product prices at the moment.

Dairy chairman Pat McCormack said co-ops should be increasing milk price based on the evidence of increased profitability in the half-yearly profits of the two biggest plc processors.

"While powder prices may have weakened somewhat in early August, they have improved in recent weeks," he said.

Mr McCormack was also critical of the IDB's new purchase price index system, which he said was clouding what the IDB was actually paying.

Meanwhile, it is rumoured Lakelands has canvassed Donegal Creameries NI milk suppliers. Estimates put the milk pool nabbed at 10-12m litres.

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