All co-ops should be paying in excess of 31c/l for October milk according to Irish Creamery and Milk Suppliers Association (ICMSA) dairy chair Gerald Quain.
Quain said increasing farmer milk price must be on the agenda of every co-op board as dairy markets had moved on significantly since a mid-summer lull.
Global milk prices have increased steadily while Irish prices have fallen
“We’ve no doubt – and the data supports us – in stating that some Irish processors cut their milk price a good deal more than was justified by market returns and they will now have extra ground to make up.”
He said Irish prices were bottom of the European milk prices league with the three largest milk purchasers over €3/100kg below the average price.
“Globally, we have seen Fonterra adjust their price upwards, and this was even before the latest rise of 3.7% in the Global Dairy Trade Auction. Global milk prices have increased steadily while Irish prices have fallen or remained stagnant, and this simply can’t continue.”
Dutch dairy quotes were returning a farm gate price of almost 32.9c/l for a mix of butter and skim milk powder while whole milk powder was at 35.1c/l.
Quain said farmgate prices always mirrored the trend in Dutch dairy quotes.ADVERTISEMENT
However, in Ireland, prices had fallen more than the Dutch for the first time in years.
“The upwards trend in the last two months across spot prices fully justifies price increases in the coming month and beyond.
“There have been many excuses from purchasers citing data as to why the milk price had to fall and it would be great to hear them announce that it must rise on the back of similarly solid hard data.
“Markets have moved in a positive direction in the last two months and farmer-suppliers expect their co-op boards to deliver a milk price increase for October commensurate with those upward movements,” Quain concluded.