The PPI index for February dropped to 105, down from 111.3 in January. This is the equivalent of 29.7c/l excluding VAT.
The 5.7% drop marks an acceleration in the fall in the value of dairy products exported by Ornua, after smaller decreases at the end of last year. The PPI now stands just below the level observed in February 2017, after peaking last October.
"It reflects lower returns for butter, skimmed milk powder and spot product," a spokesperson for Ornua told the Irish Farmers Journal.
As co-ops prepare to set February milk prices, IFA dairy chair Tom Phelan urged them to keep prices above 30c/l for this and coming months, especially in light of the costs faced by farmers as a consequence of Storm Emma.
Farmers will need every bit of their February milk cheque to cover the cost of the last week alone
“The last 12 months have been generally wetter than average, cows were brought in early last year and an already late turnout this spring will have been further delayed by the snowstorm and ice in most parts of the country. Fodder reserves, already challenged in many areas, are diminishing rapidly,” Phelan said.
“Farmers appreciated hugely the massive efforts made by co-ops, their staff, hauliers, local authorities and also fellow farmers in ensuring as much of the milk as possible was collected despite the horrendous conditions. However, farmers will need every bit of their February milk cheque to cover the cost of the last week alone. Co-ops must hold the February milk price.”
March marked the start of intervention buying by the European Commission in previous years, but the EU has decided to move to a case-by-case auction system for this year instead, with no guaranteed price to support markets.
Read more
UFU optimistic about milk prices
Dairy trends: another slight fall at this week’s GDT
Milk league: LacPatrick out in front for January
Butter prices holding strong
The PPI index for February dropped to 105, down from 111.3 in January. This is the equivalent of 29.7c/l excluding VAT.
The 5.7% drop marks an acceleration in the fall in the value of dairy products exported by Ornua, after smaller decreases at the end of last year. The PPI now stands just below the level observed in February 2017, after peaking last October.
"It reflects lower returns for butter, skimmed milk powder and spot product," a spokesperson for Ornua told the Irish Farmers Journal.
As co-ops prepare to set February milk prices, IFA dairy chair Tom Phelan urged them to keep prices above 30c/l for this and coming months, especially in light of the costs faced by farmers as a consequence of Storm Emma.
Farmers will need every bit of their February milk cheque to cover the cost of the last week alone
“The last 12 months have been generally wetter than average, cows were brought in early last year and an already late turnout this spring will have been further delayed by the snowstorm and ice in most parts of the country. Fodder reserves, already challenged in many areas, are diminishing rapidly,” Phelan said.
“Farmers appreciated hugely the massive efforts made by co-ops, their staff, hauliers, local authorities and also fellow farmers in ensuring as much of the milk as possible was collected despite the horrendous conditions. However, farmers will need every bit of their February milk cheque to cover the cost of the last week alone. Co-ops must hold the February milk price.”
March marked the start of intervention buying by the European Commission in previous years, but the EU has decided to move to a case-by-case auction system for this year instead, with no guaranteed price to support markets.
Read more
UFU optimistic about milk prices
Dairy trends: another slight fall at this week’s GDT
Milk league: LacPatrick out in front for January
Butter prices holding strong
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