The Irish Creamery Milk Suppliers Association say they expect a significant jump in the next Ornua Index.
With Butter prices rising by 17% since April of this year, The ICMSA say they expect the next Ornua Index to show significant jumps.
Gerald Quain, Chairperson of the Dairy Committee ICMSA, made the comments after the most recent notable rise in dairy markets in May.
He said that all market indicators have moved on with the latests EU statistics showing that butter prices have increased by 17%. It also showed increases of 14% in SMP, 9% increases in WMP and 7% in cheddar since April.
Mr. Quain added that other market indicators are following these trends and exceeding them in many cases. He went on to say that farmers and suppliers are right to expect an increase in the June Ornua index.
Mr. Quain went only to point out the low rate of increase in the index since January (1.3%) and says some surges in the market have not been tracked by the index, “Since the start of 2017, the Ornua index has only increased by 1.3% and while ICMSA understands that the markets were uncertain in the early months of the year, that uncertainty was dispelled quite a while ago with a very notable subsequent surges in the markets that have not been tracked by the Ornua Index”.
This he says would need to change with a significant jump expected in June, and he says they expect prices to matchthe high quality products of Irish farmers, “That would need to change and we’ll be expecting to see a serious jump in the Index announced for June. Ornua was founded and exists to market Irish dairy produce and farmer-suppliers expect it to return prices commensurate with the excellence of their farming and their products.”
He concluded by stating, “ICMSA does not think that’s an unreasonable expectation and the Ornua Index for June must start to bear a closer relation to what is clearly a much improved market situation”