Irish Milk Processors Urged to Provide End-of-Year Bonus to Suppliers
Source: DairyNews.today
The Irish Creamery Milk Suppliers’ Association (ICMSA) has called on milk processors across the country to provide an end-of-year bonus to their suppliers, particularly those at the lower end of the milk price league, to ensure parity with the top-paying processors.
Noel Murphy, chair of ICMSA’s Dairy Committee, emphasized the importance of this bonus in supporting farmers who have faced significant financial challenges despite recent improvements in market conditions.
Recovering from a Difficult Period
Murphy acknowledged that favorable weather and strong milk prices in autumn 2024 have bolstered farmer confidence and morale, but he stressed that these improvements do not compensate for the extreme difficulties of the preceding 18 months. Many farmers are still working to settle outstanding bills accumulated during that period.
“For November milk, the market has remained in a strong position,” Murphy noted. He highlighted that indicators such as the Ornua Purchase Price Index (PPI), Global Dairy Trade (GDT), and Dutch dairy quotations have all advanced, with the average EU price for November expected to exceed 53c/L.
“Given the Irish product mix, farmers can legitimately expect a milk price at this level,” he added.
Fairness and Recognition for Suppliers
Murphy pointed out that many milk processor employees receive end-of-year bonuses and argued that milk suppliers, as the cornerstone of the industry, deserve similar recognition.
“Milk supply was extremely challenging throughout the year, and while dairy markets thankfully moved upward, the good price only arrived when milk volumes were low. For much of this year, milk prices lagged behind market returns,” Murphy stated.
The ICMSA believes milk processors have the financial scope to provide these bonuses and urged them to deliver a timely show of support to their suppliers.
Call for Action
The association framed the proposed bonus as a critical confidence boost for dairy farmers, reinforcing their vital role in the sector and helping them recover from financial setbacks.
The ICMSA’s appeal highlights ongoing tensions between farmers and processors over milk pricing and seeks to ensure that rising market trends translate into tangible benefits for suppliers.
Recovering from a Difficult Period
Murphy acknowledged that favorable weather and strong milk prices in autumn 2024 have bolstered farmer confidence and morale, but he stressed that these improvements do not compensate for the extreme difficulties of the preceding 18 months. Many farmers are still working to settle outstanding bills accumulated during that period.
“For November milk, the market has remained in a strong position,” Murphy noted. He highlighted that indicators such as the Ornua Purchase Price Index (PPI), Global Dairy Trade (GDT), and Dutch dairy quotations have all advanced, with the average EU price for November expected to exceed 53c/L.
“Given the Irish product mix, farmers can legitimately expect a milk price at this level,” he added.
Fairness and Recognition for Suppliers
Murphy pointed out that many milk processor employees receive end-of-year bonuses and argued that milk suppliers, as the cornerstone of the industry, deserve similar recognition.
“Milk supply was extremely challenging throughout the year, and while dairy markets thankfully moved upward, the good price only arrived when milk volumes were low. For much of this year, milk prices lagged behind market returns,” Murphy stated.
The ICMSA believes milk processors have the financial scope to provide these bonuses and urged them to deliver a timely show of support to their suppliers.
Call for Action
The association framed the proposed bonus as a critical confidence boost for dairy farmers, reinforcing their vital role in the sector and helping them recover from financial setbacks.
The ICMSA’s appeal highlights ongoing tensions between farmers and processors over milk pricing and seeks to ensure that rising market trends translate into tangible benefits for suppliers.
