Dairy markets continue to move forward and given the cashflow crisis on farms need absolutely every improvement coming from the marketplace at present. This means that Co-ops boards must immediately announce milk price increases to bring prices into line with market reality and that reality is a milk price of at least 32 cents per litre, according to ICMSA Deputy President, Pat McCormack.
“There is a massive and growing cashflow problem on farms as a result of the terrible summer weather conditions, increased costs – in particular feed and fertiliser – and the reductions in milk price since the start of 2012. There has been a continued improvement in dairy product prices, particularly since July, and it is about time that Co-op boards passed these improvements back in full to farmers”, observed Mr McCormack, who is also Chairman of the Dairy Committee.
“While we welcome the decision of Glanbia to raise its September milk price by one cent per litre, it is our firm view that there is more to be returned to farmers and we’re particularly determined that those Co-ops who failed to increase the August milk price must take immediate action and raise the price for September. Farmers will be watching the Connacht Gold, Dairygold and Kerry situations in this regard and are legitimately expecting a positive movement in milk price. In relation to Kerry, suppliers are expecting Kerry to deliver on its commitment in relation to paying the leading milk price and an immediate milk price increase and honouring their commitment to a thirteenth payment would provide a boost to farmer confidence in the current difficult period.A price of at least 32 cents per litre is completely justified and all Co-op boards must immediately deliver this to its suppliers. Dairy farmers are losing patience”, said the Deputy President.
Ends 28 September 2012.
Pat McCormack, 087-7608958
Deputy President, ICMSA
Cathal MacCarthy, 087-6168758
ICMSA Press Office