ICMSA predicts rise in milk price
ICMSA says a price gap between top and bottom base milk has left 'substantial differences' in milk cheques between neighbours. File Picture.
Speaking in advance of milk price announcements for June supplies, the chairperson of the Irish Creamery Milk Suppliers Association (ICMSA) Dairy Committee, Ger Quain said the organisation believes that there is scope for at least a single cent per litre increase in base price from most co-ops.
He also added that there “must be more” from the co-ops who failed to increase the price for May supplies and pointed to the latest Ornua PPI which shows an increase in the base index of over 1cpl.
“Let’s talk about what we know for a fact: there was already a price gap of 1.5cpl between the top and bottom base milk that left really substantial differences in milk cheques between neighbours last month,” the chairman continued.
“That has to be bridged and it had better be closed by those at the bottom coming up.
“It cannot be the case that farmers in certain co-ops do not benefit fairly and proportionately from milk price increase.
“We see no reason whatsoever for any co-op to pay less than 36.5cpl base price for all June milk and we are supported in that by the Ornua price of 35.9cpl indicative price.”
Mr Quain went on to say that returns from across the globe remained strong during what has been “a solid year for dairy product demand” with SMP price up over 20% year-on-year and butter increasing over 25% during the same time.
“Farmers will not accept any repeat of the old discredited tactic of ‘low and slow’ price rises during peak production,” he continued.
And, farmers most certainly will not entertain excuses about events of four days ago when positive movements of four weeks ago have still not been fed through to their milk price.”
