Acting chair of the IFA’s dairy committee Stephen Arthur has condemned Dairy Industry Ireland’s (DII) proposals to change base milk price quotations.
Processors will now express their milk price on the basis of 4.2% butterfat and 3.4% protein which is the European standard and close to the average milk constituents in Ireland, DII announced on Tuesday.
The current 3.6%/3.3% pricing model to allow comparison between years will be also retained, with processors expected to quote the two prices starting with January 2021 price announcements.
DII said the change would allow for a better comparison between Irish milk prices and those quoted across the continent.
‘All for optics’
Last week, the IFA wrote to all milk processors outlining opposition to the change and requested that the letters be read out at all milk processor board of management meetings.
“The representative structure of milk processors is being undermined by management. Farmers have been side-lined. There was no consultation with elected representatives,” Arthur said.
“This is a change sought solely by management, not by suppliers, and must be reversed. Processors want to look like they are paying more for milk when nothing has changed, we are still getting the same price for our milk as we did 25 years ago.”
The IFA has called for milk price to be stated on a euro per kilogram of solids basis.
“The real threat from this change is that it will erode the gains farmers have made within the farm gate. Over time, we will end up supplying milk with higher milk solids, but for a lower price,” Arthur concluded.
