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There is scope for a 1c/l jump in milk price to reflect current market conditions, IFA dairy chair Tom Phelan has said.
The IFA has said milk price rise must remain consistent to give farmers the opportunity to meet those costs relating to sustainable production.
Phelan said: “It’s imperative that remaining milk processors increase price for the month of November, in light of the positive auction from yesterday’s GDT.”
“The IFA adjusted PPI for November was 33.16. Our estimates for the latest GDT auction suggest a 2c/l increase in milk price in the past month.
Co-op hedging
Meanwhile, ICMSA dairy chair Gerald Quain said farmers would feel that an increase to base price was warranted in its own right and as a recognition of the stability offered by the acceptance of the Irish Protocol.
Quain said: “It seems obvious that milk purchasers are hedging on the results of the crisis EU-UK trade talks. But the underlying picture is reasonably positive with Fonterra raising its farmgate milk price range.
“Co-op nerves about what’s likely to happen should not affect them paying their farmer-suppliers. Farmers cannot be paid for milk they supplied last month on the basis of what the co-ops fear might happen next month.”
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