November milk price needs to rise and bridge the gap with the “rapid rise” in the Ornua purchase price index (PPI), Irish Farmers’ Association (IFA) dairy chair Stephen Arthur has said.

The PPI for November equates to a milk price of 35.42c/l excluding VAT, with an additional 2.9c/l equivalent coming from the Ornua value payment.

The October milk price ranges from 30c/l to 32.5/l excluding VAT.

“There is a significant gap between what Ornua is delivering in terms of milk price and what milk processors are paying out,” said Arthur.

Seasonality bonuses

He added that seasonality bonuses starting in November do not constitute a rise in base price.

“Seasonality bonuses were introduced to encourage out-of-season milk supply. They are not a prop for base price,” he said.

High costs of production, difficult weather conditions and reduced milk supply mean farmers remain under significant financial pressure, Arthur added.