There is scope for at least a single cent per litre increase in base milk prices from most co-ops for June 2021 supplies.
That is according to the ICMSA’s Ger Quain, who spoke in advance of milk price announcements for June supplies.
He believes there “must be more” from those co-ops who failed to increase price for May supplies.
Base milk prices
Quain cited the latest Ornua PPI, which shows an increase in the base index of over 1cpl.
“Let’s talk about what we know for a fact: there was already a price gap of 1.5cpl between top and bottom base milk that left really substantial differences in milk cheques between neighbours last month.”
“That has to be bridged, and it had better be closed by those at the bottom coming up. It cannot be the case that farmers in certain co-ops do not benefit fairly and proportionately from milk price increase. “
“We see no reason whatsoever for any Co-op to pay less than 36.5cpl base price for all June milk, and we are supported in that by the Ornua price of 35.9 cpl indicative price.”
He highlighted that returns from across the globe remain strong in what has been a solid year for dairy product demand. The SMP price is up over 20% year-on-year and butter increased over 25% in the same timeframe.
“Farmers will not accept any repeat of the old discredited tactic of ‘low and slow’ price rises during peak production.”
“They most certainly will not entertain excuses about events of four days ago when positive movements of four weeks ago have still not been fed through to their milk price”, he concluded.
Lakeland milk price:
Meanwhile, Lakeland Dairies has set its milk price for June 2021 supplies.
Last week, the processor confirmed that its board has held the co-operative’s milk price for June.
“In the Republic of Ireland, Lakeland Dairies has held its base milk price for June at 36 cpl, including VAT, for milk at 3.6% fat and 3.3% protein.”
In Northern Ireland, Lakeland Dairies has held its milk price for June at 29.2p/litre.
The milk processor outlined its concerns in light of the ongoing Covid-19 pandemic. Read more on this story.