Other co-ops have been urged to follow Aurivo’s lead on milk price by IFA dairy chair Tom Phelan.
For April supplies, Aurivo held its base price at 28.46c/l excluding VAT, while other processors cut their prices.
Phelan said that dairy markets have been heavily affected by COVID-19 since February.
“However, as more countries get out of lockdown and markets reopen, spot prices and other market quotes in the last four to five weeks, and even the latest GDT auction, have improved from low levels.
“Meanwhile, most co-ops have cut their milk price by a total of 3c/l between March and April, which will cost an average farmer over €6,500 over the peak months from March to June alone.
“The gap between the lower market returns and the price paid to farmers has narrowed and it is now time for co-ops to hold milk prices and to let the rising market meet them.
“Aurivo deserve credit for their moderate approach on milk prices when farmers are under huge pressure. We urge other co-ops to follow their lead,” he said.
As reported last week, there are now clear signs that Europe’s dairy market is in recovery mode, following the sharp fall in prices witnessed in April after the shutdown of Europe’s €600bn food service market.
Since early May, spot prices for butter, cheese and even milk powders have been rising week on week, albeit from a low base. Last week, butter prices passed the €3,000/t mark for the first time since March.
See this week’s Irish Farmers Journal for the April milk league.
Processors cut milk prices as markets recover
Aurivo holds base price for April milk