The February Milk Price Tracker saw an increase in the base price from all 15 co-ops included, but Irish Creamery Milk Suppliers’ Association (ICMSA) dairy committee chairperson, Noel Murphy, has called on every co-op to be paying 42c/L for March supplies as a minimum.
The Milk Price Tracker – brought to you by Agriland in collaboration with the ICMSA – details milk prices from the most significant Irish dairy co-ops each month.
Speaking after the release of the Milk Price Tracker for February 2024 and in advance of the March round of milk price announcements, Murphy said that co-ops and milk purchasers “owe” their suppliers a badly needed boost and based on market data.
He also believes it will be absolutely possible to raise the milk price paid for March supplies by at least 2c/L.
Murphy cited the falling global supply which he estimated had declined by almost 1% and the alarming fall in Irish supplies.
Which, according to the ICMSA spokesperson, could be right across all co-ops by double-digits in the run-up to the critical peak period.
“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”, he said.
He added: “As the extent of the limitations on supply become apparent, we are going to see much more active forward-buying and that’ll drive-up prices.
“Those increases, which we are already seeing – just have to be passed back immediately to the milk suppliers who are still struggling with one of the worst springs on record and who are under the most severe pressure in terms of fodder.
“March is always an important month, but this year it’s been gruelling, and a real challenge and the Co-ops must know that their farmer-suppliers are at breaking point, financially and even psychologically”, Murphy said.
Milk Price Tracker
The Milk Price Tracker for January 2024, revealed that Lakeland led the way with a base price of 40.90c/L, with Strathroy in second place with a base price of 40.50c/L.
This is based solely on base milk price, even though some milk suppliers would have received a higher price from other co-ops who gave additional payments to all eligible suppliers.
Tipperary is bottom of the table with a base price of 37.74c/L. The most significant movement seen this month saw Kerry drop from the top half of the table to second from bottom for February.
The ICMSA dairy committee chairperson said that while famers are a naturally resilient bunch and will come through the weather and associated pressures, they are owed the kind of cashflow boost that would come from their co-ops looking at the supply situation and then raising prices – both asked of customers and paid to their farmer-suppliers.
Murphy said: “The other factor to remember here is that the seasonality and input bonuses might be due to end, so farmers will need that increase in base price to keep them going through Spring when there’s no sign that inputs will fall.
“We were struck by the way the February Milk Price Tracker showed a very significant disparity from top to bottom in terms of base price and we think that should be concerning to those co-ops close to the bottom.
“While bonuses bring those at the bottom to a more level playing field, some of those bonuses are dropping off in March and there will be an alarming gap in the March payment to dairy farmers if that is not filled by a comparable increase in base price.
“There’ll be a significant change in the order of co-ops if base is not improved,” according to Murphy.
Additionally, Murphy highlighted that issue of low protein percentages that are facing many farmers meaning that many farmers are not getting much of a ‘boost’ from their solids – so actually base price is the price received by suppliers.
Murphy has called on every co-op to be paying 42c/L for March supplies as a minimum.
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