IFA Irish Farmers Association : DAIRYGOLD 2019 PRICE MOVE PROVES BETTER MILK PRICES ARE POSSIBLE

29 Jan 2020

DAIRYGOLD 2019 PRICE MOVE PROVES BETTER MILK PRICES ARE POSSIBLE

Dairy

IFA National Dairy Committee Chairman Tom Phelan today (Wed) said the move by Dairygold to pay 0.5c/l on all milk supplied during 2019 would be a welcome boost to their suppliers' cash flow as calving begins.

'It shows IFA was correct in identifying scope for milk price increases when Dairygold and most other co-ops were paying significantly less than the Ornua PPI for much of 2019,' he said.

'For a 500,000 litre supplier to Dairygold, this end-of-year bonus on all 2019 supplies will be worth €2,500 - a significant contribution to cashflow, but also evidence that a better price could have been paid during the year,' he said.

'IFA has shown co-ops have been conservative on milk prices, especially in the second half of 2019. Milk price uplifts in October, November and December by most co-ops mean the gap with the December Ornua PPI has narrowed, though it remains negative at just under 0.5c/l. In light of continued firming of EU and global commodity returns into January, farmers will legitimately expect further milk price increases before spring,' he concluded.