Commenting on yet another surge in the latest Global Dairy Trade Auction, the Chairperson of the ICMSA Dairy Committee, Gerald Quain, said that the relative inaction of processors and Co-ops shown in the face of the hugely strengthened market thus far would have to end for October milk price. Mr. Quain said that based on market returns there was absolutely no reason why milk price could not be set at 30 cents per litre for October.
“Demand for dairy products has now reached a level that has seen a 59% jump in the GDT price index since March 2016 and has almost doubled since its lowest point in August 2015. We won’t accept a repeat of the a ‘deafening silence’ from the processors this month and let’s be clear: the 1 cent per litre price rise last month in no way reflected the obvious buoyancy in markets. This kind of minimal ‘inching-upwards’ price rises are very frustrating for suppliers in the context of the kind of cash-flow pressures that milk suppliers are experiencing this Autumn after what has been a basically horrific year for dairy farmers. The maths breakdown of the situation at the moment gives farmers a milk price of 30 cents per litre and that’s what the board members should be demanding from their Co-op”, said Mr. Quain.
Ends 2 November 2016.
Gerald Quain, 086-3623041
Chairperson, ICMSA Dairy Committee
Cathal MacCarthy, 087-6168758
ICMSA Press Office