ICMSA Calls for 45c/L Base Milk Price
Source: The DairyNews
Dairy markets have advanced significantly during May, and dairy farmers are calling for a corresponding increase in milk prices, according to Noel Murphy, Chairperson of ICMSA’s Dairy Committee. Murphy emphasized the importance of May as a critical month for dairy farmers' annual income, noting that the market justifies the need for a strong signal from milk processors to acknowledge current pressures by delivering a substantial milk price increase.
“From high input costs to reduced milk supplies due to weather, costs, and nitrates pressures, milk processors need only look at the input bills being built up by farmers to realize the pressures on their suppliers,” Murphy said. He highlighted the need for a major cash flow boost to help farmers navigate a challenging year following the difficulties of 2023.
On a positive note, May has seen favorable developments in the Global Dairy Trade (GDT) index, which increased on three occasions, resulting in a net rise of 6.8%. The Dutch Dairy Quotations also showed strong growth, with the butter/SMP combination rising by 5 cents per liter and WMP increasing by over 2 cents per liter. Additionally, global milk supplies remain subdued with no immediate signs of recovery.
Given these market improvements and the pressures on dairy farmers, ICMSA believes that a base milk price of 45 cents per liter is not only justified but essential to restore confidence in the sector. Murphy conveyed the clear message from dairy farmers: “We are fed up with gimmick payments. Pay us on base price and cut out the gimmickry.”
Murphy pointed out that 2024 has seen a significant decline in Ireland’s milk supplies, with adverse weather being a major factor. He stressed that milk processors must understand that margin is key and that they have not been providing sufficient margins to maintain supplies over the past year. “There needs to be a renewed focus on supporting suppliers, starting with a base price of 45 cents per liter for May milk,” Murphy concluded.
On a positive note, May has seen favorable developments in the Global Dairy Trade (GDT) index, which increased on three occasions, resulting in a net rise of 6.8%. The Dutch Dairy Quotations also showed strong growth, with the butter/SMP combination rising by 5 cents per liter and WMP increasing by over 2 cents per liter. Additionally, global milk supplies remain subdued with no immediate signs of recovery.
Given these market improvements and the pressures on dairy farmers, ICMSA believes that a base milk price of 45 cents per liter is not only justified but essential to restore confidence in the sector. Murphy conveyed the clear message from dairy farmers: “We are fed up with gimmick payments. Pay us on base price and cut out the gimmickry.”
Murphy pointed out that 2024 has seen a significant decline in Ireland’s milk supplies, with adverse weather being a major factor. He stressed that milk processors must understand that margin is key and that they have not been providing sufficient margins to maintain supplies over the past year. “There needs to be a renewed focus on supporting suppliers, starting with a base price of 45 cents per liter for May milk,” Murphy concluded.
