IFA Study Reveals Discrepancies in Milk Prices Among Irish Processors
Source: The DairyNews
In a recent statement, IFA Dairy chair Stephen Arthur voiced concerns over disparities in milk prices among Ireland's largest dairy processors, highlighting a significant gap in revenue generation.
The 2023 IFA Milk Price Analysis has brought to light discrepancies in payments received by farmers, with certain major co-ops failing to meet expectations. Arthur emphasized the substantial difference of over €14,000 in revenue between the best and worst paying milk processors.
Arthur pointed out that while some processors have introduced conditional sustainability bonuses as part of milk pricing, these factors were not included in the IFA analysis. He stressed that sustainability initiatives carry tangible costs, and farmers should not bear this burden alone. The marketplace must reflect these additional costs by ensuring they translate into improved base milk prices for farmers.
The analysis, now in its fifth year, evaluates revenue generation for a 500,000-litre spring calving milk supplier with national average solids. Arthur expressed gratitude to farmers who provided monthly statements for the analysis, acknowledging their crucial role in facilitating the study.
Farmers, according to Arthur, can no longer sustain the financial strain caused by inadequate milk prices. He urged processors to prioritize fair compensation for farmers and ensure that additional costs associated with sustainability initiatives are reflected in milk prices.
Arthur pointed out that while some processors have introduced conditional sustainability bonuses as part of milk pricing, these factors were not included in the IFA analysis. He stressed that sustainability initiatives carry tangible costs, and farmers should not bear this burden alone. The marketplace must reflect these additional costs by ensuring they translate into improved base milk prices for farmers.
The analysis, now in its fifth year, evaluates revenue generation for a 500,000-litre spring calving milk supplier with national average solids. Arthur expressed gratitude to farmers who provided monthly statements for the analysis, acknowledging their crucial role in facilitating the study.
Farmers, according to Arthur, can no longer sustain the financial strain caused by inadequate milk prices. He urged processors to prioritize fair compensation for farmers and ensure that additional costs associated with sustainability initiatives are reflected in milk prices.
