ICMSA call for Base Milk Price of 53cpl for May

A base milk price of 53 cents per litre is fully justified for May milk, according to the Chairperson of ICMSA’s Dairy Committee. Noel Murphy said that Co-op boards should be considering this as the minimum when they meet next week to set May milk price. Mr. Murphy said that the recent ‘blips’ in the last few GDT were entirely predictable given the prospect of peak milk production in the northern hemisphere. More significant, according to Mr Murphy, was that the most recent Dutch dairy quotations show that the market has not only steadied but is actually moving upwards again. The ICMSA Diary Committee Chairperson said that all the indicators are positive and dairy farmers must get the benefits of the improved market returns to offset the long list of escalating input costs.

“We have to say that we were a little taken aback by the recent comments by Minister McConalogue in which he cited the record milk prices, without ever referencing the rocketing input costs that have effectively wiped out any benefits that would have accrued due to those milk prices. To reference one without the other is effectively to give only half the story. The kind of input inflation we are seeing now is eating through even the high prices we are receiving, and it means that milk suppliers absolutely have to get every half cent that their Co-ops can pass back. This has never been about price; this is always about margin, and we can see immediately that the market is returning well in excess of 53cpl to milk processors, so we are demanding that this becomes the base Price for May milk”, confirmed Mr Murphy.

Ends        2 June 2022

Noel Murphy, 086-3815575

Chairperson, ICMSA Dairy Committee

Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office