IFA slams Dairygold’s milk price cut

Global milk supply forecasts have been revised upwards in recent weeks, growing to 1.4-1.6%, which is indicative of ample supply

IFA Dairy chair Martin McElearney has criticised Dairygold’s 3cpl August milk price cut as excessive, warning it undermines farmer confidence in co-ops

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Dairygold’s announcement of a 3/c per litre cut to its August milk price has recently been described as totally over the top by Irish Farmers’ Association (IFA) Dairy chair Martin McElearney.

“We appreciate that butter markets are under pressure and global milk supply is up, but a cut of 3cpl was not expected and has left farmers frustrated and angry,” he said.

Forecasts

For an average sized supplier, this equates to a cut of €1,600 for the August milk cheque.

Global milk supply forecasts have been revised upwards in recent weeks, growing to 1.4-1.6%, which is indicative of ample supply.

At the same time, the futures market for butter has declined to €5,600 – a drop of 11% in one week, the IFA claims.

Dairygold’s move comes at a time when farmers are already grappling with higher input costs and uncertainty across global dairy markets.

However, the latest GDT auction proved relatively stable, only dropping by 0.8%.

“Co-ops need to take a measured response to this correction in the marketplace.

“Knee jerk reactions undermine farmers’ confidence in our co-op structure.

“Co-ops must endeavour to return the best price to its suppliers and refrain from drastic cuts,” Martin McElearney concluded.

Read more: IFA president meets French ambassador

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