Milk processors must pay more than 36c/l for July milk, IFA national dairy chair Stephen Arthur has said.
The IFA highlights that when the Ornua PPI for July is adjusted for the Ornua value payment worth 3.22c/l (including VAT), the milk price equivalent is 38.72c/l.
Arthur claims a sustained milk price above 36c/l is achievable from the marketplace and farmers should receive it for the rest of 2021.
"The EU and New Zealand futures markets have returned price rises in the past week for butter and skim milk powder, with the GDT showing increases of 3.8% and 1.5% respectively in these two key commodities for Ireland.
"Farmers have been faced with a difficult season of poor grass growth and rapidly rising input costs. It's high time farmers got what the market is returning, we have to balance our books too."