The IFA dairy committee met last week to ramp up pressure on co-ops, especially those at the bottom of the league, to take a leaf out of the FrieslandCampina book and hold their milk price.

IFA national dairy committee chair Sean O’Leary said there is now clear evidence that international dairy markets are strengthening from their unsustainably low levels. Co-ops have recognised on the record that they will continue to need to support milk prices, and in the short term, this has to mean holding for May milk.

“Cashflow is lacking on most dairy farms at this stage. The milk price is at a historical low of anywhere between 21.3c/l plus VAT and 24c/l plus VAT, according to the Irish Farmers Journal April milk league, and input bills, superlevy and loan repayments all have to be found from what are now negative margins on the majority of dairy farms,” O’Leary said.

Cashflow scheme

“In this regard, the Glanbia Co-op cashflow scheme – Glanbia Advance Payment, (GAP) – is a very welcome form of support. We have made specific proposals which Minister for Agriculture Michael Creed must deliver on immediately, utilising state aid concessions to provide emergency finance to relieve all farmers from mounting superlevy and merchant credit pressures,” he said.

“Not all co-ops have the wherewithal to set up a scheme similar to the Glanbia GAP, but all must ensure they do not make a difficult situation worse by further cutting milk prices,” he added.

“This month, every member of the committee has been, or will be, in contact with their local co-op board members and the management of their co-op to impress upon them the vital importance of supporting farmers through a lengthy period of low returns, which now at least appears to be coming closer to an end. They have also lobbied local TDs and other politicians to help secure the state aid-based emergency finance scheme IFA has been advocating,” he concluded.

State aid

The IFA dairy committee has also lobbied TDs and other politicians to help secure the state aid based emergency finance scheme IFA has been advocating. We have made specific proposals that Minister for Agriculture Michael Creed must deliver on immediately, utilising state aid concessions up to €15,000 per farmer per year to provide emergency finance to relieve all farmers from mounting superlevy and merchant credit pressures.