The move by Dairygold to pay a 0.5c/l bonus on all milk supplied in 2019 is proof that better milk prices are possible and could have been paid during the year, according to IFA dairy chair Tom Phelan.

Phelan said the bonus would be a welcome boost to farmers’ cashflow as calving begins. For a 500,000-litre supplier to Dairygold, the bonus will be worth €2,500.

He added: “It shows [the] IFA was correct in identifying scope for milk price increases when Dairygold and most other co-ops were paying significantly less than the Ornua PPI for much of 2019.”

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Uplift

Phelan said: “[The] IFA has shown co-ops have been conservative on milk prices, especially in the second half of 2019. Milk price uplifts in October, November and December by most co-ops mean the gap with the December Ornua PPI has narrowed, though it remains negative at just under 0.5c/l."

In light of continued firming of EU and global commodity returns into January, Phelan said farmers would legitimately expect further milk price increases before spring.

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