January 1c from Glanbia is First Step - IFA

Posted on: 16/02/2013

IFA National Dairy Committee Chairman Kevin Kiersey said the 1c/l January milk price increase announced by Glanbia was the first step in what needed to be a major effort by all co-ops to maximise milk prices as early as possible this year.

He said this was essential to promote a good start to the spring season at a time when market trends would allow the sector to capitalise on strong commodity prices, and when farmers are still struggling with high feed costs.

�I am clear that current firm market returns, which look set to hold for the next few months at least, allow for prices of up to 34c/l + VAT from early spring, with some co-ops having more work to do than others to remain competitive with their neighbours,� Mr Kiersey said.

�Average EU prices for butter and SMP currently return around 39c/l gross, while cheddar cheese plus whey powder returns around 41c/l. Our contention that processing costs are around 5 to 6 c/l has never been challenged by industry, so we would argue that early spring milk prices of up to 34c/l + VAT are realistic,� he said.

Accepting that co-ops had supported milk prices to varying degrees in the early summer of 2012, Mr Kiersey stressed that significant market improvements in the back end of last year had not been fully passed back to farmers, and there was now real scope for co-ops to set themselves and farmers up for a good 2013 production season.


OTHER FARMING NEWS FOR THE MONTH OF 02/2013

  • 22/02/2013 - 34c a litre - realistic. IFA says on Milk Prices
    IFA National Dairy Committee Chairman Kevin Kiersey said the 3.1% increase in the latest Fonterra auction average price justified significant producer price increases. Some co-ops have increased February milk prices, with Dairygold lifting their price by 2.5c/l to 31.96c/l + VAT, but IFA would argue in lobbying co-op board members that this was only the first step towards a very realistic 34c/l + VAT for early spring milk.
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    Paul. Trapp is a Regional Sire Analyst with ABS Global. Some of his favorite acquisitions to ABS include: Dundee, Destry, Garrett, Gerard, Levi, Gillespy and Gavin. He has a B. Sc Degree (Agri Economics) from the University of Minnesota.