ICMSA say milk price recovery underway and demand immediate reflection in Co-op price
All indicators point to an ongoing recovery in dairy markets and the latest Dutch Dairy quotations (8 August) are particularly encouraging, according to Mr. Pat McCormack, Deputy President and Chairperson of ICMSA’s Dairy Committee.
“The butter/SMP equivalent price at farm level is now almost 30 cents per litre, while the WMP price is at approximately 29.5 cents per litre based on the latest Dutch quotations. Since the end of last May, butter price has increased by 12%, WMP by 7%, SMP by 23% and whey by 12%. Quite clearly the market has recovered from the slump and is on an upward trajectory. Dairy market indicators from Northern Ireland, UK, Europe and the world market all point to an improving market situation and the recent decisions by UK processors to reverse proposed cuts in milk price is yet another positive development. In addition to this data, there are clear indications of a broader supply correction on global markets – most specifically, theUSA. – and the wider outlook for milk price has certainly improved considerably”, said Mr McCormack
The ICMSA Deputy President went on to say that after a very difficult year for dairy farmers due to atrocious weather, reduced milk prices and substantially increased input costs, these market improvements will provide some encouragement to dairy farmers and it was now imperative that those Co-ops paying a milk price below the dairy market reality immediately reflected the improvements by adjusting their milk price upwards. “The gap between the top and bottom paying Co-ops for milk is now very significant. ICMSA calculates that the difference for a 300,000 litre supplier between the top and bottom-paying Co-ops for just May/June milk was of the order of €2,400. That’s an unsupportable price gap and the board members of the Co-ops in question need to seriously address the reasons for the massive gap and take immediate steps to address it. There have been undeniable improvements in dairy markets and it is high time that the Co-ops stepped up to a milk price that acknowledged that”, concluded Mr. McCormack.
Ends 9 August 2012.
Pat McCormack, 087-7608958
Deputy President, ICMSA
Cathal MacCarthy, 087-6168758
ICMSA Press Office