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Agriland
4 days ago
- Business
- Agriland
ICMSA: 50c/L base price ‘fully justified' for May milk
The Irish Creamery Milk Suppliers' Association (ICMSA) has said that a base price of 50c/L is 'fully justified' for May milk supplies. The chair of the association's dairy committee, Noel Murphy, made the comments ahead of milk price announcements for last month from co-ops. He said that co-op boards 'should resist any attempt for milk price reductions for May given the current conditions in the marketplace'. Noel Murphy, ICMSA Dairy Committee chair. Image: Domnick Walsh Eye Focus Murphy said that 'milk supplies globally and in particular in the EU remain constrained'. 'There is no evidence to suggest that milk supplies will increase to any great extent in the foreseeable future while demand for dairy products is strengthening in advance of the holiday period and dairy demand is looking strong in the medium term. 'The Global Dairy Trade (GDT) is higher today than it was at the start of 2025, the average milk price across the EU is at 53c/kg while the Dutch quotations have shown improvements in the order of 2c/L over the course of May,' he said. 'It would be simply unacceptable for milk processors, some of whom are conditioning farmers for a reduction, to cut milk prices to boost their own profits for 2025. 'The reality is that no one else in the milk processor supply chain will be taking or expected to take a cut,' he added. 'Co-op boards are fully justified in insisting that milk price is set at least at 50c/L for May milk and provide dairy farmers with the confidence to invest in their business and for the next generation to reconsider dairying as an attractive option for their future career. 'It is clear at this stage that dairy markets are relatively stable and dairy farmers expect at a minimum that their milk will remain stable or else move up to 50c/L if currently below that level,' Murphy said.
Irish Examiner
23-04-2025
- Business
- Irish Examiner
March milk prices confirmed
Dairygold, Carbery, Tirlán, and Lakeland Dairies have all announced their March milk prices. Dairygold announced they will be maintaining their quoted milk price of 50cpl based on standard constituents of 3.6% butterfat and 3.3% protein, inclusive of sustainability and quality payments and VAT. Dairygold milk suppliers will receive, on average, a farm gate milk price of 55.3cpl based on average milk solids achieved for March 2025. A Company spokesperson commented that 'Dairy markets have remained generally stable, despite the ongoing, significant geopolitical risks. Global milk production remains relatively stable, but buyers remain cautious in advance of the EU peak milk supply, as well as the threat of tariffs.' For the first time in 2025, Carbery reduced its base milk price by 1cpl. With this reduction, if it is applied across all four West Cork co-ops; Bandon, Barryroe, Drinagh and Lisvard, this will result in an average milk price of 52.12cpl, inclusive of VAT, and a 0.5cpl somatic cell count (SCC) bonus and FutureProof sustainability bonus, excluding VAT. A spokesperson for Carbery said: "Our milk price has been strong since the beginning of the year. Our adjustment this month is bringing milk price more in line with actual market performance.' Farmers supplying Tirlán will receive a total of 50.08cpl, including VAT, for March at 3.6% butterfat and 3.3% protein. This price is made up of a base milk of 49.58cpl (including VAT), a reduction also of 1cpl from February and a Sustainability Action Payment of 0.5cpl (including VAT) to all qualifying suppliers. The actual average price paid by Tirlán for March creamery milk, based on delivered constituents, will be 55.24cpl (including VAT). Tirlán Chairperson John Murphy said: 'While dairy markets are relatively stable, our milk price required a realignment to reflect market returns. Overall, supply and demand are generally in balance. Global milk supply growth is weak, with Bluetongue, Avian Flu and Foot and Mouth negatively impacting milk production in some regions. There is considerable uncertainty about the potential impact of tariffs in the coming months. The Board will continue to monitor developments on a monthly basis.' Lakeland Dairies has decided to keep its February milk price for March. A base price of 48.75cpl (3.6% butterfat and 3.3% protein) will be paid for March milk in Ireland, which is inclusive of the 0.5cpl Sustainability Incentive Payment. The Chairperson of ICMSA's Dairy Committee, Noel Murphy, has called for a reversal of cuts made to the February milk price. 'The 'Trump drama' is a medium-to-long-term concern but has no impact on current pricing and must not be used as an excuse to reduce milk price for March. There's a long way to go before we see the true implications of the US imposition of swingeing tariffs, and it's not wise or prudent to anticipate or even guess what's going to happen in the coming months. "The global milk market is in a good position, and with the weather doing its best to drive production across the country, those setting the price should be looking to sunnier days too. There's an unanswerable case to reverse the cuts to February milk price and deliver market returns in excess of 50cpl base price', he said. Mr Murphy said the justification for milk price cuts appears to be based on reductions of 'spot' prices. These February 'spot' prices have not only reversed, but prices have also improved for butter, skimmed milk powder (SMP), and whole milk powder (WMP) during March. The latest Dutch dairy quotations, published on April 16, show that fresh butter price has reduced by €50, resulting in €7,250/t net ex-works, WMP down by €80, resulting in €4300/t, and SMP down by €40, resulting in €2,390/t. As of April 15, Global Dairy Trade (GDT) has reported an overall increase of 1.6% in the GDT Price Index, resulting in an average price of €3,854/t. GDT Price Index also reports an increase of 1.5% in butter, making the weighted average price €6,750/t and an increase of 2.8% for WMP, resulting in a weighted average price of €3,666/t. SMP has seen a reduction of 2.3% on the GDT Price Index, bringing its weighted average price to €2,457.
