A significant increase in the price paid to farmers by dairy processors for April milk is “justified” due to the market returns processors are making, according to the Irish Farmers Association (IFA).

IFA dairy chair Stephen Arthur said: “This is more than justified, based on the returns Irish processors are getting for dairy products. It’s vital to help dairy farmers meet the spiralling costs of inputs at farm level.”

Comparison

Arthur made a comparison between the current Ornua Purchasing Price Index (PPI) and the equivalent PPI for April 2021, which he said shows “an increase of almost 60% for dairy products sold through Ornua”.

During the same period, the IFA estimates the milk price paid to farmers has increased by a lesser 36%.

Arthur, a dairy farmer in Co Wicklow, called for milk processor board members to “look at what they are paying farmers for April milk.”

“If this is less than what Ornua is returning, then serious questions must be asked about how this can be justified, given the current input price challenges,” he said.

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