Commenting on the April milk output figures from the CSO, the Chairperson of the ICMSA Dairy Committee, Ger Quain, said that the statistics confirmed that, as suspected, the severe winter and spring has resulted in a very substantial drop in milk production that will feed into the overall picture for 2018 in several ways: “Obviously the first and most serious consequence is in terms of farmer income, the difference in production between April this year and April 2017 will – we estimate – work out at about €15 million less dairy farmer income. That is without even going near the constituents and the impact that we’ll see there”, noted Mr. Quain.
“The loss of income will be compounded by the extra costs incurred in getting through the spring in terms of fodder and feed and it leaves us in a position where we can say, even at this half-way stage, that 2018 is going to be a year of challenges, stress and pressure. However, the reduction in global milk supplies will feed back almost immediately into a stronger market as buyers look at the supply statistics and projections and purchase forward in the expectation of reduced supplies coming onto the market from all the significant producing regions. We’re seeing this already in dairy products prices with butter in particular moving upwards. It means, as far as ICMSA is concerned, that there can be no possibility whatsoever of Co-ops reducing their May milk price when they come to announce them over the next fortnight and, in fact, milk price increases now need to be put back on the agenda”, said Mr. Quain.
Ends 30 May 2018.
Ger Quain, 086-3623041
Chairperson, ICMSA Dairy Committee
Cathal MacCarthy, 087-6168758
ICMSA Press office