The Irish Farmers Association (IFA) has warned against dairy processor negativity on milk price this spring.
Calling for processors to maximise the price paid to farmers, IFA dairy chair Stephen Arthur said they were “slow to pass on returns when the market was rising but have no problem telling farmers that they will drop prices immediately now that the market is softening”.
He was commenting on the softening of global market prices for dairy produce, seen since the start of 2023.
"At regional meetings across the country and via other communication channels, milk processors have been talking down the milk price, citing the global market downturn."
"Sustaining milk price as we approach peak milk production has to be a priority for every milk processor," Arthur said.
Global Dairy Trade (GDT)
Arthur highlighted that Tuesday’s Global Dairy Trade (GDT) results from New Zealand reported a rise in the index of 3.2%.
He described how this rise included a 6.6% increase in the butter sub-index and suggested that these results indicate a positive signal to the market following weeks of consecutive declines.
Dairy processors must continue to support farmers in a high input cost environment, says the IFA.
"While global markets are challenging, yesterday's GDT auction results were more positive,” he said.
Input costs
Warning against a milk price chop by processors, the IFA dairy chair highlighted that dairy farmer input costs remain high.
He pointed out the latest CSO analysis which shows that fertiliser prices are still 94% higher than they were 12 months ago and that meal prices are 33% higher.
"It is vital that our processors continue to support farmers in this high input environment. Our production costs remain high, therefore, we cannot sustain significant cuts to our milk price this spring," Arthur said.
Read more
Dairy Trends: New Zealand milk supply down, as the US is up
Milk price indicator falls below 40p/l
The Irish Farmers Association (IFA) has warned against dairy processor negativity on milk price this spring.
Calling for processors to maximise the price paid to farmers, IFA dairy chair Stephen Arthur said they were “slow to pass on returns when the market was rising but have no problem telling farmers that they will drop prices immediately now that the market is softening”.
He was commenting on the softening of global market prices for dairy produce, seen since the start of 2023.
"At regional meetings across the country and via other communication channels, milk processors have been talking down the milk price, citing the global market downturn."
"Sustaining milk price as we approach peak milk production has to be a priority for every milk processor," Arthur said.
Global Dairy Trade (GDT)
Arthur highlighted that Tuesday’s Global Dairy Trade (GDT) results from New Zealand reported a rise in the index of 3.2%.
He described how this rise included a 6.6% increase in the butter sub-index and suggested that these results indicate a positive signal to the market following weeks of consecutive declines.
Dairy processors must continue to support farmers in a high input cost environment, says the IFA.
"While global markets are challenging, yesterday's GDT auction results were more positive,” he said.
Input costs
Warning against a milk price chop by processors, the IFA dairy chair highlighted that dairy farmer input costs remain high.
He pointed out the latest CSO analysis which shows that fertiliser prices are still 94% higher than they were 12 months ago and that meal prices are 33% higher.
"It is vital that our processors continue to support farmers in this high input environment. Our production costs remain high, therefore, we cannot sustain significant cuts to our milk price this spring," Arthur said.
Read more
Dairy Trends: New Zealand milk supply down, as the US is up
Milk price indicator falls below 40p/l
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