The National Dairy Committee has in recent weeks lobbied board members to maintain March milk prices. This campaign has been based on sound market research which showed that pre-COVID 19, the outlook for dairy markets was extremely positive. Spots quotes then suggested a milk price equivalent of around 34c/l, and co-ops would have sold forward at least some of the spring milk into that market as normal.

“Also, the Ornua PPI had been improving since September, and running above the average co-op payout by over 1c/l since October. Even despite the 2c/l cut in the Ornua PPI for March, at 31.8c/l incl VAT, it is still up to 2.4c/l above the March milk price announced by some milk processors,” he said.

“March has been a long and challenging month from a weather and cost perspective. Maintaining the milk price would have helped farmers pay bills and better position themselves for the difficult months ahead. IFA is now calling on those processors who have yet to decide on their March milk price to think harder on what their decision will mean for their suppliers. Cutting the milk price now to minimise what may be down the line is of no benefit to farmers today,” he stressed.