Strong Signal On Milk Price Needed for May Milk  –  ICMSA

Dairy markets have moved on considerably during the month of May and not only do dairy farmers need an increase in milk price, the market justifies it and dairy farmers need a strong signal from their milk processor that they understand the pressures on them at present by the delivery of a strong milk price increase for May, according to Mr. Noel Murphy, Chairperson of ICMSA’s Dairy Committee, with May being a critical month for dairy farmers in terms of annual income.    From high input costs to reduced milk supplies due to weather, costs and nitrates pressures, milk processors need only look at the input bills being built up by farmers to realise the pressures on their suppliers and the need for a major cashflow boost to get them through what has been an extremely difficult year thus far following a very difficult 2023.

On the plus side and it is positive, the month of May has seen the GDT increase on three occasions with a net increase of 6.8% while the Dutch Dairy Quotations have moved forward strongly as well with the butter/SMP combination increasing by 5 cents per litre during May while WMP has increased by over 2 cents per litre over the same period.   In addition, global milk supplies remain subdued and there are no indications of any recovery in global milk supplies in the short term.  

Given the pressures on dairy farmers and given the forward movements in dairy markets, ICMSA, Mr. Murphy said, believes that a base milk price of 45 cents per litre is not only justified but required to restore a level of confidence in the sector and another clear message from dairy farmers is that they are fed up with the “gimmick” payments and the clear message from dairy farmers is pay us on base price and cut out the “gimmickry”.   The year 2024 has seen Ireland milk supplies crash with the weather a major factor but milk processors would want to realise that margin is key and they haven’t been delivering a margin to dairy farmers over the last year that is sufficient to maintain supplies.   There needs to be a renewed focus on supporting suppliers and this should start with a base price of 45 cents per litre for May milk, concluded Mr. Murphy.

ENDS   5 June 2024

Noel Murphy is at (086) 3815575

ICMSA Head Office (061) 314677.