ICMSA warns co-ops not to cut April milk price

ICMSA dairy chairperson, Ger Quain, said that any move by dairy co-ops to cut their April milk price will cause widespread anger among farmers.

Mr Quain said minimal year-on-year supply growth in the EU and US points to a rise rather than a cut in the milk price. He cited commodity butter/SMP running at over 31.2cpl and WMP at almost 35cpl in the latest Dutch dairy quotations.

“Any examination of the data quickly indicates an underlying strength in dairy markets,” said Mr Quain. “The fact is the global supply position is favourable given that the EU and US are showing minimal growth year-on-year and those supply-side positives are being reflected in the wholesale markets and the Global Dairy Trade auction.

“It’s worth noting that the GDT has seen 10 consecutive gains and is at its highest level since June 2017 and farmers are rightly asking why these increases are not translating into price gains to farmers. When the GDT was falling, processors were very quick to cite it as reflecting the trend. How come that 10 consecutive increases aren’t being cited as indicating the trend?”

The dairy co-ops are due to begin their April milk price announcements from next week.