The Ornua PPI for June is at 81.0 (equivalent to 22.5 c/l, VAT inclusive, based on Ornua's product purchase mix and assumed processing costs of 6.5p/l).

This remains at the lowest level since the PPI started. Lakeland held its May milk price this week. The remaining co-ops will be setting prices in the coming days.

IFA president Joe Healy said his organisation had written to all co-ops about thei milk price for the coming months. “With global milk output slowing and dairy commodity prices firming, we are now asking co-op board members, who have supported farmers, to show the confidence to make a solid milk price commitment for the remainder of 2016,” he said.

“We have very specifically asked co-op chairmen and CEOs to read out our letter to their board members on the occasion of their next meeting, the one which will consider the milk price for June milk,” he said.

This commitment must be, as a minimum, about holding current pay-outs to year end

IFA national dairy chairman Sean O’Leary added: “This commitment must be, as a minimum, about holding current pay-outs to year end, and exploring every opportunity over the coming months to achieve efficiencies and pass back improving market returns to farmers”.

Gerald Quain, chairperson of the ICMSA’s dairy committee, said that based on the ‘no-change’ position in the Ornua Index for June, it is clear that there is no need whatsoever for any reductions in June milk price.

"Some milk processors - including our three largest, Glanbia, Dairygold and Kerry - are paying well below what the market currently justifies and this needs to be addressed," he added, pointing to the significant gap between top- and bottom-paying processors.

"It well past the time that co-op boards sought explanations from their managements as to why their co-op cannot return a milk price that is at least equivalent to the Ornua PPI," he said, adding that the 6.5c/l assumed processing cost was excessive in the light of reduced energy prices.

Read more

Dairy futures market: powder futures fall after last week’s GDT drop