ICMSA Calls for July Milk Price to Reach 45c/L
Source: The DairyNews
Noel Murphy, the dairy committee chair of the Irish Creamery Milk Suppliers’ Association (ICMSA), has called for a significant increase in the July milk price to 45c/L. Murphy emphasized that milk purchasers and cooperatives must align with current market trends, stating that the target price is “very achievable.”
Murphy highlighted that July has been favorable from a "spot price perspective," with the average return from butter, skimmed milk powder, and whole milk powder exceeding 45c/L after processing costs. He noted that since mid-May, the gross return of butter and skimmed milk powder in the Dutch dairy quotes has been above 51c/L before processing costs.
In May, the base milk price saw considerable improvement, with almost all cooperatives, except two, raising their prices from April. Murphy urged cooperative boards to closely examine their financials and question whether they can afford not to increase milk prices given the favorable market conditions. He stressed that dairy farmers are facing severe cashflow issues, with many contemplating drastic measures such as reducing stock and volume or exiting the industry altogether.
Murphy pointed out that input costs are a significant concern, not only because of their high prices but also due to the large volumes required. He argued that there is overwhelming justification for an across-the-board increase in the July milk price.
The ICMSA dairy chair concluded by stating that the need for a milk price increase has never been more critical, given the current financial pressures on dairy farmers.
In May, the base milk price saw considerable improvement, with almost all cooperatives, except two, raising their prices from April. Murphy urged cooperative boards to closely examine their financials and question whether they can afford not to increase milk prices given the favorable market conditions. He stressed that dairy farmers are facing severe cashflow issues, with many contemplating drastic measures such as reducing stock and volume or exiting the industry altogether.
Murphy pointed out that input costs are a significant concern, not only because of their high prices but also due to the large volumes required. He argued that there is overwhelming justification for an across-the-board increase in the July milk price.
The ICMSA dairy chair concluded by stating that the need for a milk price increase has never been more critical, given the current financial pressures on dairy farmers.
