IDB 'inaction' causing woe for farmers: ICMSA
Surging dairy markets have led to farm organisations calling for an end to what they called the "outrageously unjust" milk prices being paid by Irish processors.
Whole milk powder (WMP) prices have doubled since last July on Fonterra's Global Dairy Trade (GDT) auction, while Dutch auction WMP prices are also up by €100/t.
The GDT recorded a 15pc increase last week, its biggest ever since trading started nearly five years ago.
A deepening drought in New Zealand, combined with tightening supplies in the US and cold-hit EU countries have seen world auction prices overtake European prices in dairy commodity markets.
However, sources close to the Irish Diary Board (IDB) suggest that they are not planning to announce any increase in prices in the coming weeks.
This has sparked an angry reaction from the ICMSA, with dairy chairman Pat McCormack claiming that the IDB's "inaction is now compounding an unprecedented financial crisis on many family farms".
In response to the criticism, the IDB said that their index consistently reflected the market.
"Some of the produce we sell is forward contracted while a substantial amount is consumer product which is slower to move in either direction.