ICMSA Urges EU to Implement Voluntary Milk Supply Reduction Amid Falling Prices
The Irish Creamery Milk Suppliers Association (ICMSA) has urged the European Commission to swiftly implement a Voluntary Milk Supply Reduction Scheme in response to plummeting milk prices. Denis Drennan, ICMSA President, emphasized the critical need for intervention as Irish dairy farmers are currently producing milk at a loss.
Recent announcements reveal that the price of milk has fallen from over 50 cents to below 33 cents per litre in certain cases. This has prompted concerns about the sustainability of dairy farming in Ireland and across the EU. Mr. Drennan noted that the global market is oversupplied, with a reported 2.3% increase in global supplies from January to November 2025 compared to a decrease of 0.1% in the same period of 2024.
The proposed scheme, previously implemented in 2016, would provide payments to farmers who voluntarily reduce their milk output. This approach is believed to stabilize market conditions by allowing farmers to make production decisions based on their circumstances. Mr. Drennan pointed out the scheme's past success in reversing adverse market trends.
Despite potential opposition, the ICMSA insists on the necessity of the scheme to prevent further damage to the dairy sector. The European Milk Board (EMB) also supports this initiative, advocating for EU action to mitigate the market collapse. The ICMSA calls on the Irish government to back this solution to restore market balance efficiently.
EU's Role in Market Stabilization
The ICMSA argues that the EU must address oversupply within its jurisdiction, drawing on mechanisms like the Voluntary Reduction Scheme. Mr. Drennan stated that while the global market challenges persist, the EU has the capability to manage internal supply issues proactively.
As the peak production period approaches in late spring and early summer, swift action is deemed crucial. The ICMSA and EMB are pushing for immediate implementation to support dairy farmers and maintain the integrity of the EU's dairy industry.
