There is scope for at least a c/l milk price rise, particularly from milk processors that have been paying below-average milk prices, IFA dairy chair Tom Phelan has said.
The IFA has called on all milk processors to return a fair price to suppliers, especially those that offered below-average prices for August supplies.
For August alone, there is a difference of €1,200 in the milk cheque for the typical supplier between the top-paying west Cork co-ops and the division-three players.
The Ornua purchasing price index (PPI) is up for September. The result which was published Wednesday 7 September put the index at 102.8 from 101.8.
When adjusted for the Ornua value payment and accounting for 7c/l costs, it puts the September equivalent price at 30.4c/l excluding VAT, up from 29.1c/l in August. The IFA adjusted PPI estimates a return of 32.1c/l.
Significant gains of approximately 5c/l on the commodity market since its lowest point in May demonstrates the robustness of the trade
The Ornua statement said the increase is as a result of a more favourable product mix, with generally stable returns across the product range.
Exports of dairy products have increased by 6% up to the end of July, exceeding €3bn.
Phelan continued: “Significant gains of approximately 5c/l on the commodity market since its lowest point in May demonstrates the robustness of the trade.”
The most recent Global Dairy Trade (GDT) auction was up 2.2% on Tuesday, with important price lifts for whole milk powder (WMP) and butter.
Butter was up 8.4% to trade at $3,561/t and WMP was up 1.7% to trade at $3,041/t.