Irish Dairy Farmers Demand Higher Milk Prices Amid Improved Market Conditions
Source: The DairyNews
The Irish Farmers' Association (IFA) has called on dairy processors to increase the prices paid to farmers for May milk supplies, citing market improvements and the need for fair compensation amidst rising production costs. Stephen Arthur, IFA’s dairy chairperson, highlighted a 1.7% increase in the Global Dairy Trade (GDT) and a rise in the Ornua Purchase Price Index (PPI) to 39.6 cents per liter, suggesting that market conditions support a potential price increase.
Arthur emphasized that lower milk volumes compared to last year have led to reduced sales for farmers, compounding financial pressures from a challenging spring. "Milk volumes continue to lag behind 2023 levels which means reduced sales for dairy farmers. Together with the increased cost of production from the very difficult spring, dairy farmers need to be paid for their product and we believe the market can support a price increase," he stated.
Similarly, the Irish Creamery Milk Suppliers’ Association (ICMSA) has urged for a substantial price hike. Noel Murphy, chairperson of the ICMSA Dairy Committee, argued that the dairy markets have significantly improved during May, justifying a price increase. Murphy also noted the financial strain on farmers due to high input costs and reduced milk supply factors, such as adverse weather and regulatory pressures on nitrates.
"The ICMSA believes that a milk price of 45 cents per liter is not only justified but required to restore a level of confidence in the sector," Murphy said, advocating for a direct increase in base milk price and an end to what he described as "gimmick payments."
Both associations are pressing for a timely and substantial adjustment in milk prices from processors, reflecting the improved market returns and acknowledging the economic hardships currently faced by dairy farmers in Ireland.
Similarly, the Irish Creamery Milk Suppliers’ Association (ICMSA) has urged for a substantial price hike. Noel Murphy, chairperson of the ICMSA Dairy Committee, argued that the dairy markets have significantly improved during May, justifying a price increase. Murphy also noted the financial strain on farmers due to high input costs and reduced milk supply factors, such as adverse weather and regulatory pressures on nitrates.
"The ICMSA believes that a milk price of 45 cents per liter is not only justified but required to restore a level of confidence in the sector," Murphy said, advocating for a direct increase in base milk price and an end to what he described as "gimmick payments."
Both associations are pressing for a timely and substantial adjustment in milk prices from processors, reflecting the improved market returns and acknowledging the economic hardships currently faced by dairy farmers in Ireland.
