Milk price “in positive place” – ICMSA want reversal of cuts to Feb price and March base price in excess of 50cpl

As the dairy sector prepares for the third-round of 2025 milk price announcement, the Chairperson of ICMSA’s Dairy Committee, Noel Murphy, has called for a reversal of cuts made to the February milk price. Mr. Murphy said the fact that only two processors cut – and those were the first two to announce their prices – showed that the other Co-ops were correct in their decision not to act prematurely and to read the market more accurately. Mr. Murphy said that the market was and is ‘in a positive place’ and the justification to cut appears to have been based on reductions to ‘spot’ prices. Not alone have those February ‘spot’ reductions been reversed, prices have improved for Butter, SMP and WMP during March.  The ICMSA Dairy Committee Chairperson noted that the market for milk is returning anywhere from 49.5cpl to 51.5cpl so there is no need for a base price below this point.

Mr. Murphy said that March is a critical month as what he called “the camouflage” of seasonal bonuses disappear in most Co-ops. He said this is precisely why ICMSA always stressed base price as the ultimate indicator and farmers will be able to see with absolute clarity where their own processor stands in the real league.  

“The ‘Trump drama’ is a medium-to-long term concern but has no impact on current pricing and must not be used as an excuse to reduce milk price for March.  There’s a long way to go before we see the true implications of the US imposition of swingeing tariffs, and it’s not wise or prudent to anticipate or even guess what’s going to happen in the coming months. The global milk market is a good position and with weather doing its best to drive on production across the country, those setting the price should be looking to sunnier days too. There’s an unanswerable case to reverse the cuts to February milk price and deliver market returns in excess of 50cpl base price”, concluded Mr. Murphy

Ends       8 April 2025

Noel Murphy, 086-3815575

Chairperson, ICMSA Dairy Committee

Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office