ICMSA Calls for Fair Milk Price as Co-ops Cut Base Rates

Dairy farmers are facing renewed challenges as the Irish Creamery Milk Suppliers’ Association (ICMSA) insists that co-ops should be offering a base price of 50c/L for February milk supplies. Noel Murphy, chair of the ICMSA’s dairy committee, has openly criticized co-ops for fragmenting milk prices, where portions of what should be the base price are given as bonuses. "It’s a bad habit and is usually employed to deliberately obscure mediocre base price," Murphy stated.

Both Lakeland Dairies and Kerry Dairy Ireland have announced a 1c/L cut in their base prices for February milk, a decision not sitting well with the ICMSA. Although, both had previously increased their prices at the start of the year, with Kerry Dairy Ireland’s January price including a significant top-up resulting in a 53.5c/L payment.

Murphy has highlighted that although Lakeland Dairies’ February announcement appeared stable, the removal of early calving bonuses effectively reduced the base price for many farmers. He argues that, given the strong market for butter, there is ample justification to maintain or even increase the base price during this period of strong market performance. ICMSA demands that co-ops drop optional extras and restore a fair base price of 50c/L, as projected by market analyses.