ICMSA call for 45cpl for July milk - Kilkenny Farming

Speaking in advance of July milk price announcements, ICMSA Dairy Committee Chairperson, Noel Murphy, said that milk purchasers and Co-ops are obliged to keep up with current market movements and this should result in an increase across the board for July milk, with 45cpl very achievable.

Mr Murphy said July has been a positive month from a ‘spot price’ perspective with the average return from both Butter/ SMP and WMP over 45cpl after processing costs are deducted. He pointed out that since the middle of May, the gross return of Butter/SMP in the Dutch Dairy quotes has been north of 51cpl before processing costs have been deducted.

“Co-op boards need to look very hard at the figures – both income and outgoings - confronting their farmer-suppliers and ask the question: can they really afford not to increase milk price where the market shows that’s merited? The boards have to understand that we are well past temporary difficulties now; we are deep into the space where more and more dairy farmers are considering either drastic stock and volume reduction, or even exit, altogether.

“The markets are telling the Co-ops that they should be paying 45cpl to their farmer-suppliers – and we farmer-suppliers are telling the Co-ops that it was never more badly needed,” he said.