Irish producers gain from milk price rise

18 August 2000

Irish producers gain from milk price rise

IRISH milk producers are enjoying higher prices for the third month in succession, following further increases in the Irish Dairy Board payment for skimmed milk powder.

The current IDB price to processors is Ir£1.21/gal (20.5p/litre), up by 4p/gal for the month and some 12.4p/gal more than was paid last autumn. The rise has been driven by firmer markets for skimmed milk powder leading to improved processing margins.

Dairy co-ops have been quick to pass the increases back to farmers. Tipperary co-op approved a 3p/gal rise on Wednesday this week, taking its July price to 105.8p/gal (17.9p/litre).

Earlier, Lakeland Dairies and NCF raised their rates 2p/gal, taking them to 105.5p/gal (17.9p/litre) and 107.5p/gal (18.2p/litre) respectively.

Of the public limited companies, Kerry put on another 2.5p/gal to 104p/gal (17.6p/litre), while Golden Vale had already posted its 4p/gal rise, to match Kerrys July price, two months ago.

But Irelands biggest processor, Glanbia, has failed to respond, prompting an angry reaction from the Irish Farmers Association. The situation is "totally indefensible", it says, warning of militant action.

&#8226 UK milk group United Milk has announced an October price of 17.1p/litre for those members currently supplying Express Dairies, who have been served notice. According to commercial director, Robert Danks, this represents an increase of about 1.2p/litre.

There are currently some 60 farms with 62m litres involved – about 7% of Uniteds membership and throughput. The company will be taking on their quota from October – the first time it has operated as a quota holder – with the milk processed under a toll agreement with Wyke Farms. &#42

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