Irish dairy processors need to follow other European processors in passing back dairy market returns to producers to reach a 30c/l milk price by the end of the year, the Irish Farmers Association has said.

In a statement on Thursday, IFA national dairy committee chair Sean O’Leary said that the price increases from processors across Europe were “strong signals” that there was a sustainable dairy market recovery.

“Arla has increased its milk price by a total of 7.25c/kg since September 2016 to a December level just under 32c/kg, while FrieslandCampina has lifted its price over the same period by 12.5c/kg to 37.5c/kg – in both cases, this would be for milk at higher constituents than the Irish standard of 3.3% protein and 3.6% fat,” O’Leary said.

He called on Irish processors to reflect this in their November and December milk prices to reach the 30c/l barrier by the end of 2016 ahead of peak milk supply in the spring. All co-ops that have set November milk prices so far have increased prices.

O’Leary acknowledged that a cautious outlook was required for volatile dairy markets but said that global milk supplies were unlikely to increase in the coming months as culling and weather events in New Zealand have affected the response of global supply.

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Irish milk prices need to hit 30c/l by year-end – IFA

The IFA has called on Irish co-ops to emulate European milk purchasers with November and December milk prices.