Markets can sustain an increased price for March milk, IFA dairy chair Stephen Arthur has said.
Arthur was reacting to the latest Ornua PPI for March of 112.6.
When adjusted to include the Ornua value payment, this is the equivalent of 35.9c/l including VAT.
“While many processors will be removing or reducing seasonal milk bonuses this month, there is no excuse for milk price to fall as a consequence,” Arthur said.
“Processors are very quick to reduce milk price when markets aren’t as strong, but very slow to pass on returns when markets are positive.”
Arthur called on milk processors to match the Ornua PPI this month and for farmers to get their fair share of the buoyant market.
Future milk expansion and growth has come into sharp focus for dairy farmers since the announcement of the Glanbia peak management supply policy, the Wicklow farmer said.
With greater environmental commitments and restrained supply, farmers must get the maximum return from the marketplace to sustain their businesses.