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The IFA is urging dairy processors to review their own cost structures in order to support farmers through the COVID-19 pandemic.
The organisation criticised processors for rushing to “slash” March milk prices and pointed out that 30% of spring milk would have already been sold forward at a much higher price than current prices.
IFA president Tim Cullinan said that banks were engaging with customers in light of the exceptional circumstances and co-ops should use this opportunity to seek greater leeway on their commitments.
We are starting to see some green shoots on markets
His sentiments were echoed by IFA dairy chair Tom Phelan, who added they were starting to see some market growth return as Asia came out of lockdown.
“We are starting to see some green shoots on markets. Most of Asia is out of lockdown and dairy imports are starting to flow again, with a 20% increase in EU exports to China for March alone,” Phelan said.
“The introduction of the EU private storage scheme, as limited as it is, has helped improve market confidence and stabilise spot dairy commodity prices.”
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