Disparities in Dairy Prices Raise Concerns Among Farmers

Following recent price cuts by Co-ops and processors nationwide, significant concerns have been raised by Noel Murphy, Chairperson of ICMSA's Dairy Committee, regarding the disparity in milk prices. Murphy points out a disturbing 5cpl difference in the base price for September milk supply from different processors, leading to a potential €2000 difference in returns for a supply of 45,000 litres. This raises issues of fairness among neighboring farmers delivering identical products.

Murphy also criticized the inconsistent application of 'Forward Pricing', which should theoretically buffer farmers from price fluctuations but is not observed in practice when prices fall. He argues that farmers are facing these challenges unshielded by their forward contracts.

With the expectation that dairy farmers in 2025 manage such volatility, Murphy noted the frustration of seeing neighbors receive higher base prices and milk cheques due to decisions made by their Co-op.