An upturn in dairy markets should mean that co-ops address the milk price gaps that have emerged, according to the IFA.

“A farmer supplying an average of 350,000 litres, whose May production accounts for 13.7% of annual output, faces base value discrepancies varying from €879 less to €487 more when compared to the average of the eight main co-ops’ base prices for the month of May,” IFA dairy chair Tom Phelan said, who based his statement on IFA analysis.

A farmer receiving the lower of the eight prices would earn €4,749 less than if he had received the average price

The analysis deliberately excludes fodder/weather supports and focuses on the base price paid by eight leading co-ops, as the support is unlikely to be paid in June milk cheques.

“According to our analysis, if the gaps between the prices paid by the main eight milk purchasing co-ops persist for the rest of the year, a farmer receiving the lower of the eight prices would earn €4,749 less than if he had received the average price,” Phelan said.

“Meanwhile, if he received the highest of the eight prices, he would earn €2,632 more than if he had received the average price.”

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