ICMSA question why increase in IDB index to its highest level since its introduction has still not resulted in a milk price increase
Commenting on the increase in the Irish Dairy Board Milk Price Index to 111.1 for December 2012, Mr. Pat McCormack, Deputy President and Chairperson of ICMSA’s Dairy Committee, said that it again clearly highlights the fact that the price being paid by Co-ops to milk suppliers is well behind market developments and needs to move up immediately to reflect reality. Mr McCormack noted that Cash-flow pressures are growing on dairy farmers by the day and Co-ops must respond by passing back the improved market returns.
“We see that markets remain in a very positive place for dairy products with the first Global Dairy Trade auction of the year up 2%, the Dutch Quotations are positive and market indicators from the UK, EU and global markets suggesting an improving or stable market situation. Market returns are now at the 40 cent per litre region and a milk price increase is fully justified”, said Mr McCormack.
“The improvement in the Irish Dairy Board index for December is very significant and at 111.1 is at its highest level since the index was introduced. At its previous peaks in summer 2011, dairy farmers were receiving 34 cents per litre and this should be the minimum benchmark for Co-ops at this time. Quite clearly, there is considerable room for improvement in milk prices and given the financial pressures on farmers, which, by the way, Co-ops are well aware of through higher input trading bills being carried forward, farmers need a clear signal from Co-ops on milk price and this can best be delivered by an immediate increase in milk price that will offer some relief to farmers who are under severe pressure at this time.
ENDS. 16 January 2013.
Pat McCormack, 087-7608958
Deputy President of ICMSA and Chairman of the Dairy Committee
Cathal MacCarthy, 087-6168758
ICMSA Press Office