ICMSA Advocates for Higher Milk Prices Amid Supply Concerns
Source: The DairyNews
The February Milk Price Tracker has shown a base price increase across all 15 co-operatives, yet Noel Murphy, Chairperson of the Irish Creamery Milk Suppliers’ Association (ICMSA) Dairy Committee, is urging a minimum payout of 42 cents per liter for March's milk supply.
This recommendation is echoed by Agriland's monthly Milk Price Tracker, which monitors the pricing actions of Ireland's major dairy co-operatives. In anticipation of the forthcoming March price announcements, Murphy emphasized that the co-operatives "owe" their farmers a much-needed financial uplift, which is justified by current market trends.
Murphy pointed to a near 1% drop in global milk supply, alongside a more pronounced decline in Irish outputs, predicting a double-digit decrease across all co-operatives as they approach the peak supply season. He noted the probable impact of limited grass intake on milk volumes, forecasting no short-term recovery in supply levels.
"The increasing scarcity of milk is likely to stimulate active forward-buying, pushing prices upward," Murphy explained. He insisted that these price hikes should be immediately passed on to milk suppliers, who are enduring one of the harshest springs on record, compounded by severe fodder shortages and financial pressures.
The January 2024 Milk Price Tracker indicated that Lakeland and Strathroy led with the highest base prices, while Tipperary remained at the bottom. Significant fluctuations were also observed in February, with Kerry experiencing a notable drop.
Murphy underscored the importance of price adjustments by co-operatives, especially as seasonal and input bonuses are set to conclude, placing additional financial strain on farmers. He stressed that without a corresponding increase in the base milk price, there could be a significant disparity in March payments, which could profoundly affect dairy farmers' cash flow and overall well-being.
Murphy pointed to a near 1% drop in global milk supply, alongside a more pronounced decline in Irish outputs, predicting a double-digit decrease across all co-operatives as they approach the peak supply season. He noted the probable impact of limited grass intake on milk volumes, forecasting no short-term recovery in supply levels.
"The increasing scarcity of milk is likely to stimulate active forward-buying, pushing prices upward," Murphy explained. He insisted that these price hikes should be immediately passed on to milk suppliers, who are enduring one of the harshest springs on record, compounded by severe fodder shortages and financial pressures.
The January 2024 Milk Price Tracker indicated that Lakeland and Strathroy led with the highest base prices, while Tipperary remained at the bottom. Significant fluctuations were also observed in February, with Kerry experiencing a notable drop.
Murphy underscored the importance of price adjustments by co-operatives, especially as seasonal and input bonuses are set to conclude, placing additional financial strain on farmers. He stressed that without a corresponding increase in the base milk price, there could be a significant disparity in March payments, which could profoundly affect dairy farmers' cash flow and overall well-being.
