Search

01 Dec 2021

Boost for Kilkenny dairy farmers as ICMSA expecting 36 cents per litre for May milk

Kilkenny Kilkenny Kilkenny

Boost for Kilkenny dairy farmers as ICMSA expecting 36 cents per litre for May milk

The Chairperson of ICMSA’s Dairy Committee has said that the association’s analysis of current dairy prices indicates a price of 36cpl and Ger Quain said he expects that to be the price announced for May supplies when the processors decide over the next few weeks. Mr Quain said that close study of current market conditions and trends showed that most milk purchasers and Co-ops had held back slightly on April milk price for their supplier-members.

 

“Some of the processors did increase price for April supplies. But some – inexplicably – did not.  That means that that price rise is already overdue and will certainly have to be passed back in the next announcement for May supplies. The Ornua PPI is 34.15cpl excluding added value of over 2cpl, meaning that there is a larger difference being left between what the processors got and what they passed on. We expect that to be closed in the upcoming round of price announcements”, said Mr Quain.

 

“There’s a ‘low and slow’ feel to some of this that’s making milk suppliers suspicious. We’re seeing the second ‘bounce’ of 2021 dairy markets when some farmers have still not got the benefits of the first ‘bounce’. The most recent milk market developments have seen all products increase with the industry standard butter/SMP mix rising by the equivalent of 1.5cpl in the last two weeks. WMP increased by a cent per litre in the same timeframe, according to Dutch Dairy Quotations. These increases need to be translated into farm price in the next price announcement, otherwise farmers will suspect that the prices is being held back till we’re past peak production and farmer milk volumes fall”, concluded the Dairy Committee Chairperson.

To continue reading this article for FREE,
please kindly register and/or log in.


Registration is absolutely 100% FREE and will help us personalise your experience on our sites. You can also sign up to our carefully curated newsletter(s) to keep up to date with your latest local news!

Register / Login

Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.

Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.