Farm bod­ies urge milk pro­ces­sors to fol­low Lake­lands’ lead on prices

Irish Independent - Farming - - FI­NANCE -

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.

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