The positive trend for the Ornua PPI gives low-paying co-ops the scope to close the gap with competitors, IFA dairy chair Tom Phelan has said.

When adjusted for the Ornua value payment and accounting for 7c/l assumed processing costs, it puts the October equivalent milk price at 31c/l excluding VAT (32.7c/l including VAT), up from 30.4c/l (32 c/l including VAT) in September.

Phelan said: “The dairy sector has proven robust amongst the COVID-19 uncertainty, as clearly seen by the slight but upward trend of the Ornua PPI each month. This gives farmers confidence going into the backend.”

Narrowing the gap

For September milk, there was a difference of about 2c/l in base price between the highest-paying and lowest-paying milk processors.

Phelan continued: “We highlighted this difference last month as a growing issue amongst the lower-paying processors.

“Instead of the gap narrowing, it has since widened. Dairy farmers expect this price difference to be addressed this month.”

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