Joe Parlon Chairman of Offaly IFA has called on all Co-Ops and Board Members not to implement any further cut on Milk Price. Mr Parlon believes there are number of reasons on why Co-Ops should hold milk price.
He notes that whilst markets have fallen from peak, this has bottomed out and Dairy Prices could be set to improve from now on. He believes it is crucial that industry correspondence should avoid boom bust talk and tread carefully on farmers confidence.
The Offaly IFA Chairman stated that the price cut in peak months ‘has fundamental impact’ on dairy farmers income for the year while feed fuel and fertilizer has increased significantly.
He noted that spring weather has increased costs of production, price cuts damage profitability and confidence, Co – Ops have rebuilt their balance sheets in the last 18 months while he claims that many farmers are facing a super levy bill from last year.
He continued, “Some farmers face deductions under Co–Ops Peak Management Schemes. Credit availability is still poor on farms and EU Markets for commodities have bottomed out.” He also noted that the exchange rate of the Euro against sterling and dollar.
Mr Parlon is calling on all dairy farmers to keep pressure on their Co–Op and Board Members and not allow any further cuts in the sector.