ICMSA call for 45cpl for July milk – “If ever a price rise was needed, it’s now”

Speaking in advance of the July milk price announcements, ICMSA Dairy Committee Chairperson, Noel Murphy, has said that milk purchasers and Co-ops are obliged to keep up with current market movements and this should result in an increase across the board for July milk with 45cpl very achievable.  Mr. Murphy said July has been a positive month from a ‘spot price’ perspective with the average return from both Butter/SMP and WMP over 45cpl after processing costs are deducted.  He pointed out that since the middle of May, the gross return of Butter/SMP in the Dutch Dairy quotes has been north of 51cpl before processing costs have been deducted.  

“There is an overwhelming justification for July’s milk price to increase across the board.  Quite aside from the market justification, if ever a milk price increase was needed, then it’s now”, he said, alluding to the dire income-outgoings ‘squeeze being experienced across the once-vibrant dairy farmer sector.

“Co-op boards need to look very hard at the figures – both income and outgoings -confronting their farmer-suppliers and ask the question: can they really afford not to increase milk price where the market shows that’s merited? The boards have to understand that we are well past temporary difficulties now; we are deep into the space where more and more dairy farmers are considering either drastic stock and volume reduction, or even exit, altogether.  Cashflow has never been as tight, and that situation will get worse in the coming months if inputs usage remains high.  Remember: it’s not only how expensive these inputs are, but the volume that will need to be purchased.  The markets are telling the Co-ops that they should be paying 45cpl to their farmer-suppliers – and we farmer-suppliers are telling the Co-ops that it was never more badly needed”, concluded Mr. Murphy.

Ends    2 August 2024

Noel Murphy, 086-3815575

Chairperson, ICMSA Dairy Committee

Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office