Farmers can’t understand increased allocation for processing costs, despite the investments made in modern processing facilities, IFA president Tim Cullinan has said.

“With over 50% more milk going through more modern plants, farmers cannot understand how costs are increasing when increased throughput should reduce them.”

The IFA has also voiced its disappointment with the decision by Ornua to amend its Purchasing Price Index (PPI).

Cullinan said: “The IFA has consistently communicated to Ornua, at the board table and at the top level, the serious concerns of farmers who feared the review would take away from the transparency of the PPI. Ornua should continue to publish PPI in the old and new format."

New board

It would also have made more sense to farmers for this decision to be considered by the new Ornua board due to come into Office later this year, IFA national dairy chair Tom Phelan has said.

“The onus is now firmly on Ornua to prove to farmers that this new format will continue to serve them as well as the previous version.

“Farmers fear that today’s changes may undermine the transparency of the index and its relevance to their milk price. Ornua must now come out and explain these changes to farmers, and prove to their satisfaction that it will continue to serve farmers well,” Phelan concluded.

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