Dairy Processors Urged to Raise Prices
UK, IRELAND - Dairy commodity prices have risen, and two farming unions on the island of Ireland have urged processors not to delay passing this on to farmers, who have faced months of cash flow pressures in their businesses.
4 August 2016
2 minute read
Deputy president of the Ulster Farmers' Union (UFU), Ivor Ferguson, said the past two months had brought a 'favourable combination of factors' that point to a sustained recovery in milk prices.
"These recovery hopes have been boosted by the latest New Zealand Global Dairy Trade (GDT) auction delivering an increase of 6.6 per cent, putting the price at its highest level for nine months.
"Farmers have faced a long and severe downturn and we want processors to make passing on these gains a priority to boost hopes that this financial pressure will finally ease,” said Mr Ferguson.
Irish Farmers' Association (IFA) National Dairy Chairman Sean O’Leary called on all co-ops, whose boards will meet in the next two weeks to decide on the July milk price, to take stock of improving market returns.
“With supplies now tightening very visibly, and the trend appearing entrenched, buyers have started worrying about availability into 2017, and prices have moved up.
“It is now quite clear that the tide has turned on dairy markets and that we are looking at a recovery. It may be slow and it may take some time to translate into sufficiently improved milk prices to address the current dire cash shortages on farms, but it must be reflected by co-ops in their pricing plans in coming months.
"Farmers need the extra few cents to pay bills, and to rebuild their badly shaken confidence,” Mr O’Leary concluded.
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