The Ulster Farmers’ Union is calling on dairy processors to follow Dale Farm’s lead and increase base prices for June.
“There was disappointment when Dale Farm announced a 0.5p/litre increase for May but the 1p/litre increase for June is a move in the right direction. We want to see other processors following suit without delay,” said UFU dairy chairman William Irvine, pictured.
The 1p/litre rise takes Dale Farm’s base price in Northern Ireland up to 27p/litre in June. With the additional 0.3p/litre loyalty bonus this means that suppliers will be working from a base of 27.3p/litre before adjustments.
Mr Irvine says market signals are positive and indicate that there is room for further base price increases.
“Based on our analysis, we expect price increases to be sustainable at good levels until the autumn at least. Demand for dairy products is driving commodity price increases and should translate into base price rises for producers.”
AMPE, MCVE and the UFU MPI have all made significant gains over the last two months, with the UFU index up 22%over the same time period.
“Some see this move by Dale Farm as a way to secure their supplier base, and it is welcomed. Other processors must follow their lead and share market gains with their producers. This will go some of the way towards further helping local dairy farmers’ recovery from the devastating period of prolonged low milk prices,” said Mr Irvine.
This week’s Global Dairy Trade Event 190 concluded with the GDT Price Index down by 0.8%.
Key results are as follows:
AMF index up 4.4%, average price US$6,885/MT
Butter index up 2.9%, average price US$5,768/MT
BMP not offered
Ched index down 3.8%, average price US$4,121/MT
LAC index down 11.1%, average price US$869/MT
RenCas index down 8.0%, average price US$6,104/MT
SMP index up 1.4%, average price US$2,218/MT
WMP index down 3.3%, average price US$3,022/MT