Dairy farmers demand 1c price increase
As prices received by dairy processors on the continent continue to improve diary farmers say there is 'scope' for an increase in the price paid to them
13 October 2009
Dairy farmers are seeking an immediate 1c per litre price increase following a lift in European dairy prices. According to IFA National Dairy Committee chairman Richard Kennedy, European dairy commodity prices have been rising rapidly, which meant that co-ops were “already receiving stronger prices for the main dairy products, with prices continuing to rise.”
Kennedy stated that the recent adjustment means there is now scope for an increase in prices paid to dairy farmers. He said it would enable the IDB to improve its September butter price, and Irish co-ops to increase its payout to farmers immediately by at least 1c per litre for September milk.
“Average quoted EU butter prices have increased by 14% since July, to a current average of €2,505, though there are some spot quotes reported as high as €3,000 per tonne (40% above intervention) as cream and fresh butter supplies are short on the EU market,” said Kennedy.
“A stronger milk price in coming months would help counter milk shortages at this difficult time of year, help alleviate cash-flow difficulties on farms, as well as send a clear message to farmers that they will soon return to viability,” he concluded.