Ornua to suspend milk levy in recognition of dairy farming challenges

Kerrygold brand owner Ornua is to suspended its milk levy in response to the challenges facing dairy farmers.  

In a statement today, Ornua said: “in recognition of the on-farm challenges currently experienced by Irish dairy farming families, due to the global dairy market downturn, the Ornua Board is suspending the monthly Ornua milk levy from May 1.”

Through the milk levy, Irish dairy farmers directly contribute to the Kerrygold brand and the marketing development of Irish dairy products in over 110 countries. Orna said “notwithstanding the levy’s important contribution to Ornua, it is hoped that the suspension will go some way towards supporting farming families at this difficult time. In 2016, it is estimated that the suspension will return nearly €6 million to Irish dairy farmers.”

The Ornua Board will reconsider the suspension of the milk levy when the Ornua Purchase Price Index returns to 103 (30.5 cpl incl. VAT) for three consecutive months.

IFA National Dairy Committee Chairman Sean O’Leary welcomed the decision by the Board of Ornua to suspend the 0.14c/l levy on dairy farmers until the Ornua PPI returns to a level equivalent to 30.5c/l incl VAT.

Ornua, as a commercially successful business in its own right, is making with this gesture a useful contribution to the support dairy farmers need at a time when their cash flow is pressured by low milk prices, bad weather, high feed bills, superlevy repayments and other outgoings, Mr O’Leary remarked.

“While this gesture is important, it does not absolve co-ops of the necessity to continue supporting milk prices, and I urge all to hold their March milk price to avoid making what is already a critical situation on many heavily invested farms much worse,” Mr O’Leary concluded.