Monaghan IFA County Dairy Committee Chairman Seamus Brennan has said that the increase in the April Northern Irish milk auction price to 26.08 pence per litre (equivalent at current rates to 30.2c/litre) was yet more evidence of a much improved outlook for milk prices.

According to Mr Brennan, this provided yet more support for IFA's view that 28c/l + VAT was realistic and justified for April milk. “In the last couple of months, while dairy markets have been recovering, the prices paid to Irish milk producers have only just lifted above bare costs. The current (March) prices of around 26c/l + VAT are only delivering a couple of cents above costs for farmers. Bearing in mind that they have suffered unprecedented financial losses in 2009, passing back every possible further milk price increase must be a priority for every co-op.”

Mr Brennan also said that tighter milk supplies in the EU, a downward revision of the expected Oceanian output for next season and strengthening demand should counteract the impact of overhanging stocks. “We believe that prices look set to continue firm for some time - even allowing for the physical release of intervention stocks under the Deprived Persons scheme from early May - both within the EU and on the world markets. This augurs well for Irish dairy farmers returning to real profitability in 2010.”

The County Dairy Committee Chairman added that IFA contends that an April milk price of 28c/l + VAT is not only the minimum necessary for Irish dairy farmers, but that it is also fully justified by recent market developments. IFA urges all co-op board members to ensure this price is paid for April milk all around the country. “We believe further milk price increases will be possible in coming months, and co-ops must pass back the maximum they possibly can to help farmers return to viability and help offset some of the massive losses suffered in 2009,” Mr Brennan concluded.