Co-ops have serious questions to answer on milk prices, according to IFA dairy chair Tom Phelan, who said prices are back at the same levels as 24 years ago.
“Bearing in mind that many industry spokespeople predicted only a couple of months ago that 2019 milk prices would be about on par with last year’s, co-ops owe it to their suppliers to signal that this is the end of milk price cuts for 2019,” he said.
“Farmers need every cent as peak approaches to clear their massively increased 2018 bills."
Questions
Phelan set out three questions which he said co-ops and the industry must answer:
Why are milk prices back to 1995 levels when massive investment has been made by co-ops, Ornua and Bord Bia in processing and marketing?While farmers are delivering on higher quality milk and sustainability, where is the value pay-back to them through improved remuneration for their milk?Why are the dairy industry and Bord Bia allowing infant formula manufacturers to flout the spirit of Origin Green by importing SMP from countries which do not operate anything like the SDAS?Investment
He added that farmers had invested over €1bn on farms and improved the quality of their milk, as well as taking part in stringent audits every 18 months to obtain certification under Origin Green’s Sustainable Dairy Assurance Scheme (SDAS).
He also pointed out that Bord Bia, Ornua and individual co-operatives had spent considerable sums on marketing and identifying new markets and products.
He said: “Farmers legitimately ask when all this investment has been made on farms and in industry to generate value, when a national food sustainability strategy has been developed and farmers are delivering on it, how come we still, this month, are looking at a 1995 milk price?”
He called on co-ops to reassure farmers that they had seen the last milk price cuts for 2019.
Co-ops have serious questions to answer on milk prices, according to IFA dairy chair Tom Phelan, who said prices are back at the same levels as 24 years ago.
“Bearing in mind that many industry spokespeople predicted only a couple of months ago that 2019 milk prices would be about on par with last year’s, co-ops owe it to their suppliers to signal that this is the end of milk price cuts for 2019,” he said.
“Farmers need every cent as peak approaches to clear their massively increased 2018 bills."
Questions
Phelan set out three questions which he said co-ops and the industry must answer:
Why are milk prices back to 1995 levels when massive investment has been made by co-ops, Ornua and Bord Bia in processing and marketing?While farmers are delivering on higher quality milk and sustainability, where is the value pay-back to them through improved remuneration for their milk?Why are the dairy industry and Bord Bia allowing infant formula manufacturers to flout the spirit of Origin Green by importing SMP from countries which do not operate anything like the SDAS?Investment
He added that farmers had invested over €1bn on farms and improved the quality of their milk, as well as taking part in stringent audits every 18 months to obtain certification under Origin Green’s Sustainable Dairy Assurance Scheme (SDAS).
He also pointed out that Bord Bia, Ornua and individual co-operatives had spent considerable sums on marketing and identifying new markets and products.
He said: “Farmers legitimately ask when all this investment has been made on farms and in industry to generate value, when a national food sustainability strategy has been developed and farmers are delivering on it, how come we still, this month, are looking at a 1995 milk price?”
He called on co-ops to reassure farmers that they had seen the last milk price cuts for 2019.
This is a subscriber-only article
SHARING OPTIONS: