Most co-ops have failed to pass back the full value of the Ornua purchase price index (PPI) since last May, according to IFA national dairy chair Tom Phelan.

The committee is seeking a commitment by co-op board members that they will hold the milk price for at least all of the winter months.

“Using the prices reported in the Irish Farmers Journal Milk Price League for the main milk purchasing co-ops for May to September, a 350,000l supplier would have been better off depending on the co-op by between €414 and €1,957 if they had been paid the equivalent of the Ornua PPI milk price for the same period rather than the actual co-op price,” Phelan said.

“It is clear that co-ops have benefited from major milk volume increases for the August to October period, which they purchased at less than the market was returning to them at the time. Over the same period, European milk purchasers such as FrieslandCampina, Arla, Lactalis and others were actually increasing payouts for farmers,” he added.

The Index for October is 106.5 (31.9c/l, VAT inclusive, based on Ornua’s product purchase mix and assumed costs of 6.5c/l) and is adjusted from 110.4 in September. The October 2018 index reflects weaker returns, specifically for fat.

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Calls for milk price to be held over winter months

Co-op boards will meet in the next 10 days to set milk prices. The IFA says at the very least prices must be held.