ICMSA urges processors and co-ops to ‘stay strong’ on milk prices

Dairy processors are well positioned to repay farmers for investing in expansion by keeping their milk price well ahead of global market ‘spot’ commodity prices, the ICMSA has stated.

Pat McCormack, ICMSA deputy president and chair of its dairy committee, has urged Irish processors and co-ops to follow the lead set by Lakeland Dairies and “stay strong” on milk price in the face of downward pressures on international markets.

While describing Lakeland’s decision to drop its milk price to 35c/l as disappointing, Mr McCormack said this move did at least show that processors are in a position to pay this price based on current market returns. He said dairy farmers had every right to expect that the strong customer base and contracts developed by the dairy industry over the last number of years will now deliver a milk price well ahead of ‘spot’ commodity prices.