Louth IFA say most co-ops failed to pass back full value of the Ornua PPI

Louth IFA Dairy Committee Chairman Nicholas Cooney, has said that analysis by the committee of co-ops’ milk prices had shown that most had failed to pass back the full value of the Ornua PPI since last May. 

The committee is seeking a commitment by co-op board members that they will hold the milk price for at least all of the winter months.

“Using the prices reported in the Farmers’ Journal Milk Price League for the main milk purchasing co-ops for May to September, a 350,000l supplier would have been better off by between €414 and €1,957 had he/she been paid the Ornua PPI milk price equivalent for the same period (see table below),” Mr Cooney said.

“It is clear that co-ops have benefited from major milk volume increases for the August to October period, which they purchased at less than the market was returning to them at the time.  Over the same period, European milk purchasers such as Friesland Campina, Arla, Lactalis and others were actually increasing payouts for farmers,” he added.

“With market signals now a little more challenging, and bearing in mind that volumes will ease seasonally – even if they continue to be up on last year’s – co-ops must now make a clear commitment to farmers that they will hold the milk price at current level at least for the winter months,” he concluded.