As milk supplies look certain to fall, ICMSA want Co-ops to raise prices and anticipate tightening supplies
Speaking in advance of most the July announcements of milk prices by our Co-ops and milk processors, Noel Murphy, Chairperson of the ICMSA Dairy Committee, has said that it is highly likely that milk flows in Ireland this Autumn will be significantly reduced due to a number of factors and he has called on Co-ops to begin what he called a “manageable series of lifts in farmer milk price” that anticipates that tightening of supplies.
“It is no secret that farmers around the country are suffering the effects of the current drought and having little or no grass are feeding precious winter stocks increasing per litre costs while milk supplies from the cows are falling. So we are in that ‘double whammy’ of feeding more and and getting less for it. That’s going to drop supplies, and we hope that that’s going to push milk price up – as per the Lakelands’ price rise just announced”, said Mr Murphy.
Noting that the price being received for that reduced output is down substantially on last year, Mr Murphy said that farmers were already looking at every cow in the parlour and doing minute calculations on individual costs and yields.
“The clear message to our Co-ops is that if milk is to keep flowing this Autumn, then milk price needs to improve. There are tentative signs that ‘spot’ prices are ‘firming-up’ more in the last month and we anticipate this continuing as the fall in supplies becomes more measurable and buyers come in to ‘buy forward’. In the meantime – and starting immediately – the price returned to farmers needs to increase by whatever means possible. The market for proteins is strong and Whole Milk Powder increased almost 3cpl in the the last week on the Dutch Dairy Quotes, we need all the powers in our industry to chase that increased revenue as farmers are feeling the drought pinch at present and will feel it for months to come. If milk processors are looking ahead and want those lower supplies of milk, then they better start paying for it”, he concluded.
