Farm bodies urge milk processors to follow Lakelands’ lead on prices
BOTH THE IFA and ICMSA have urged the other milk processors to follow the example of Lakelands and keep price cuts to a minimum.
The decision of the Glanbia board to “reduce the base price is very disappointing”, according to Gerald Quain of the ICMSA.
“Everyone knows that the milk price achieved over the next two months will go a long way to determining the overall performance of 2018 for dairy farmers,” the ICMSA dairy chairman said.
“Equally everyone knows the hardships being endured at farm level, with silage and concentrates costs likely to reach historical highs,” he added.
“The dairy markets have worked up some momentum in the last number of weeks and we’re particularly encouraged by the fact that Dutch dairy quotes for the butter/SMP (skim milk powder) mix have increased over 6c/l in the last month with WMP (whole milk powder) up 2c/l in the same timeframe,” he said.
IFA dairy chairman, Tom Phelan, said Ornua’s decision to hold the PPI for April indicated that world dairy markets were stabilising for the first time since October.
“I would expect this helped Lakeland make this decision, and other co-ops must now do the same in recognition of the horrendously difficult late spring that dairy farmers have endured,” Mr Phelan said.
“The boards of other co-ops will be meeting to decide on the April milk price. They must not lose sight of the fact that it is only this month that farmers have started to see improved grass growth, while many could not keep cows outside day and night until a couple of weeks ago,” he added.