The decision by Aurivo – ‘uniquely among co-ops’ – to cut their milk price for a second month running was a real let down for their suppliers, at a time when markets and the outlook for 2019 justifies price stability, according to IFA National Dairy Chairman Tom Phelan.
He said this decision was a major blow, particularly in what has been a very difficult year for farmers. It was crucial, he added, that Aurivo would outline to farmers what their plans are looking ahead to 2019.
“Our research shows that that the majority of indices relevant to EU dairy markets, whether it is EU MMO average market prices, spot prices and futures for the first half of 2019 suggest a milk price equivalent of around 30c/l + VAT.
“While this obviously would vary based on product mix and timing of sales contracts, it is also reflected by the November Ornua PPI which is equivalent to 29.69c/l + VAT (31.3c/l incl VAT),” Tom Phelan said.
He said that the IFA National Dairy Committee had lobbied to avoid price reductions at a time when the market place justified stable prices.
“I urge the Aurivo Board to carefully review the market situation and the outlook for Spring, and to outline to their very concerned suppliers how they are going to optimise milk prices through 2019,” said Tom Phelan.
For more, read this week’s Connacht Tribune.
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