Irish Farmers Association (IFA) dairy chair Stephen Arthur has said that milk processors can and must pay more for August milk.

“The latest PPI shows how strong the price is. While the market was hesitant over the summer, it has clearly moved on,” he said.

The August PPI of 118.1 and an Ornua value payment of €10.11m equates to an IFA adjusted PPI of 38.71, including VAT.

Sustained rally

“We are experiencing a sustained rally of milk price rises after a dip in commodity prices over the summer.

"Once again, we have seen butter and skim rise across the European spot markets and GDT,” Arthur continued.

European spot prices are returning over €4,000 per tonne for butter and over €2,500 per tonne for SMP.

Last week, the EU futures market for September 2021 to April 2022 returned €4,102 for butter and €2,614 for SMP.

“We need a milk price that reflects Ornua returns,” he concluded.