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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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‘Milk processors must deliver a milk price above 40c/L for the rest of the year’

The IFA has called on milk processors to break the 40c/L price barrier for November milk supplies.

Ornua has announced the PPI (Purchase Price Index) for November, demonstrating what the farm group has regarded as “impressive gains” in milk price since October.

“At 131.9, the milk price equivalent is 40.3cpl. This rises to 44.31cpl when adjusted to include the Ornua Value Payment.”

November milk price

In a statement today (Wednesday, December 1st, 2021), IFA Dairy chairman, Stephen Arthur said:

“Milk processors must pay a milk price in excess of 40cpl for November milk,” he added.

“The global market is very positive at the moment. Our industry is very well positioned to take advantage of this,” he added.

Meanwhile, international dairy markets continue to perform strongly, with the New Zealand GDT index up 14% in the past three months.

Despite rises in global commodity prices, global supply remains “sluggish,” the IFA said.

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Furthermore, US milk production has fallen by 0.5% in October due to a reduction in cow numbers; NZ milk production is back 3.3%, and European supplies “remain steady”.

“Typically, as milk price rises, global supply increases, but this year, we are seeing supply remain steady.

“This has translated into really strong prospects for milk price for 2022,” he said.

“Our milk processors must command strong product prices in this buoyant global market and deliver a milk price above 40c/L for the rest of the year,” he concluded.

Other dairy news

Meanwhile, Lakeland Dairies has announced a new enhanced solids-based payment system for its milk suppliers in Northern Ireland.

The milk processor believes that the new model will encourage suppliers to produce milk with higher protein and butterfat contents.

The spokesperson highlighted the benefits of the change:

  • Ensure “stability and fairness” for all Lakeland Dairies milk suppliers in Northern Ireland;
  • It will not impact any supplier’s base payments going forward;
  • It enables those who wish to focus on increasing milk solids to receive additional payments. This is in line with the future increased levels of protein and butterfat they can supply.


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