39c/litre an 'absolutely realistic price' for December milk payments
Irish Creamery Milk Suppliers Association dairy committee chairman Noel Murphy said that co-ops "can and should" be paying 39c/litre for December milk supplies.
Farmers are urging co-ops to pay 39c/litre for milk supplied in December.
Irish Creamery Milk Suppliers Association dairy committee chairman Noel Murphy said that co-ops "can and should" be paying this.
While he noted that the volumes produced in December were traditionally low, Mr Murphy said that there was "little doubt that the 2023 production was particularly low as farmers had dried off early in the face of unacceptably slow price rises and stubbornly high inputs".
"There is no doubt that 39c/litre is an absolutely realistic price for co-ops to reach for December payments, and the markets for the last quarter of 2023 prove as much," Mr Murphy said.
"Milk supplies are tight in exporting nations and if farmers are to be encouraged to produce long term, in the volumes that the co-ops already know they will require, then prices that reflect a rising global market and demand have to be paid to the primary producers.
"Our feeling is that if the co-ops try to shortchange the farmers now, then they will come to profoundly regret this later in the year."
Noting the market trends since the summer of 2023 and describing them as "unmistakable", Mr Murphy said that the GDT index is up over 20% since its lowest offering and European quotes for butter are up by almost a quarter in that same time period.
This translates into quotes on the European and Dutch auction returning equivalent farmgate prices of 42c/litre for the different product mixes, according to the ICMSA.
"It’s up to the co-ops to recognise those signals and act on them," Mr Murphy added.
"They have to be bold and begin restoring the farmer confidence that has been so badly shaken by 18 months of cruel margin-squeeze."
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