Rise in milk prices expected

Speaking in advance of milk price announcements for June supplies the Chairperson of ICMSA’s Dairy Committee said that the organisation believes that there is scope for at least a single cent per litre increase in base price from most co-ops. But Ger Quain said there “must be more” from those co-ops who failed to increase price for May supplies. Mr. Quain cited 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 top and bottom base milk that left really substantial differences in milk cheques between neighbours last month.

"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 35.9 cpl indicative price. Returns from across the globe remain strong in what has been a solid year for dairy product demand with SMP price up over 20% year on year and butter increasing over 25% in the same timeframe.

"Farmers will not accept any repeat of the old discredited tactic of ‘low and slow’ price rises during peak production and they 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."