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HomeDairyProcessors must pay more than 36cpl for July milk
Catherina Cunnane
Catherina Cunnane
Catherina Cunnane hails from a sixth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the firm during its start-up phase in 2015.
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Processors must pay more than 36cpl for July milk

Milk processors must pay prices of more than 36cpl for July 2021 milk supplies.

That is according to IFA national dairy chairman, Stephen Arthur, who made the remark ahead of July milk price announcements.

He pointed out that the Ornua PPI for July equates to 35.5cpl.

July 2021 milk prices

“However, when the figure is adjusted for the Ornua Value Payment worth 3.22cpl (including VAT), the milk price equivalent is 38.72cpl.”

“A sustained milk price above 36cpl is achievable from the marketplace. Farmers should receive it for the rest of 2021.”

“Farmers have been faced with a difficult season of poor grass growth and rapidly rising input costs.”

“It’s high time farmers got what the market is returning; we have to balance our books too.”

Arthur added that the EU and NZ futures markets have returned price rises in the past week for butter and SMP.

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The GDT shows increases of 3.8% and 1.5%, respectively in these two “key” commodities for Ireland.

Updates on milk prices.

Average dairy farm income could exceed €86,000 this year

According to the mid-year outlook for 2021 produced by Teagasc economists, improving farm output prices are likely to provide an increase in farm incomes in 2021.

The state agency is predicting an increase in spite of rising input prices.

Weather conditions through the first half of 2021 have not been ideal for grass-based systems. However, conditions have favoured cereal crop development and potential yield.

The report highlighted that the average income on Irish dairy farms in 2021 could exceed the record of €86,000 in 2017.

It acknowledged that while a portion of the peak milk delivery season remains, it has based this outlook if weather conditions remain favourable and milk prices hold.

“The economic recovery from COVID-19 has led to some input price inflation, which has impacted on fertiliser and fuel prices.”

“Price increases for fertiliser and fuel were foreseen and largely reverse reductions in the price of these input items which occurred in 2020.”

Feed prices have also been higher in 2021, reflecting the supply and demand conditions in the feed grains market.

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