Search

14 Aug 2022

Call for milk price to increase to Kilkenny farmers for December supplies

IFA

IFA stock image

The Ornua PPI for December has climbed to 135.5, an equivalent farm gate price of 41.6cpl (VAT incl).
When adjusted to include the Ornua Value Payment, worth €3.72m, the equivalent farm gate price is 45.6cpl.


Due to rising input costs, adverse weather and more restrictive environmental policies, global milk supply from the main exporting countries has been constrained despite a substantial increase in dairy commodity prices.


IFA Dairy Chairman Stephen Arthur said this tightened supply is supporting the sustained rise in milk price we have seen for the past six months.


This week’s New Zealand GDT auctions also reported milk price increases in butter, SMP and cheddar cheese.
However, the benefits to farmers of the increase in milk price have been significantly offset by the rise in input costs.


Teagasc estimate that the average cost of production will increase by 13% in 2022, on top of a 9% increase in 2021. Combined, this will lead to a cost increase of circa 23% within two years and is expected to result in a decline in average incomes for dairy farmers this year.
Mr Arthur said processors must pay a milk price well in excess of 40 cent per litre this month.
“Given the buoyant year processors have had and the rising costs farmers will have to incur this year, every board member has to seriously consider a 13th payment for its suppliers,” he said.

To continue reading this article for FREE,
please kindly register and/or log in.


Registration is absolutely 100% FREE and will help us personalise your experience on our sites. You can also sign up to our carefully curated newsletter(s) to keep up to date with your latest local news!

Register / Login

Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.

Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.