Discover why the ICMSA is urging Irish dairy co-ops to raise March milk prices to a minimum of 42c/L. Will this boost help struggling farmers amid limited supply?
In the latest update for the February Milk Price Tracker, an encouraging rise has been observed in the base price across all 15 co-ops included in the assessment. Nonetheless, the Irish Creamery Milk Suppliers Association’s (ICMSA) Dairy Committee Chairperson, Noel Murphy, stresses that every co-op should be setting 42c/L as the minimum price for March supplies.
The Milk Price Tracker—an insightful collaboration between Agriland and the ICMSA—provides detailed monthly reports on milk prices from the foremost Irish dairy co-ops.
Murphy uttered a sincere plea after the release of the February 2024 Milk Price Tracker and on the brink of the March milk price announcements. He expressed that as a matter of integrity, co-ops and milk purchasers owe their suppliers a crucial uplift, a statement he justifies based on current market data. He also affirmed that his proposed 2c/L price hike for the month’s supplies is not only plausible but achievable.
“It’s highly likely now that most cows will be hitting into peak supply period without much grass in their diet, and that will lower volumes; we don’t see the 2024 supply trending up anytime soon.” -Murphy noted, acknowledging the falling global supply, which he estimated had declined by almost 1% and the alarming fall in Irish supplies.
Further ahead in his analysis, Murphy urged that this supply shortfall must be met with more assertive forward-buying activity to help drive prices upwards. He argues that the ensuing increases, which are already beginning to materialize, must be reflected back to the milk suppliers exposed to one of the harshest springs on record and under severe pressure in terms of fodder.
Reflecting on the January 2024 Milk Price Tracker, it revealed that Lakeland led the way with a competitive base price of 40.90c/L, followed by Strathroy at 40.50c/L. These figures were solely based on the base milk price, considering that some milk suppliers would have received a higher price from other co-ops who offered additional payments to all eligible suppliers. As for the less fortunate, Tipperary trailed at the bottom of the table with a base price of 37.74c/L.
In addition to his analysis, Murphy pointed to the low protein percentages that many farmers are contending with. This means that many farmers are not getting much of a ‘boost’ from their solids – the base price is the price received by suppliers. Hence, he insists that every co-op should pay 42c/L as a bare minimum for March supplies.
Key Takeaways:
- The low protein percentages many farmers are facing indicate that their revenues from solids aren’t substantially boosted; hence, the base price becomes the price they receive.
- Noel Murphy emphasizes the necessity of a minimum payment of 42c/L for March milk supplies from all co-ops to support this challenging situation.
- According to Murphy, increasing the base price is crucial to prevent a significant shift in the co-ops’ order.
