Irish Creamery Milk Suppliers’ Association (ICMSA) dairy committee chair, Noel Murphy has called for an increase in July milk price to 45c/L.

Speaking in advance of milk price announcements, Murphy said that milk purchasers and co-ops are “obliged to keep up with current market movements”, and that 45c/L was “very achievable”.

He said that July has been a “positive month” from a “spot price perspective”, with the average return from both butter or skimmed milk powder and whole milk powder over 45c/L after processing costs are deducted.

Murphy added that since the middle of May, the gross return of butter or skimmed milk powder in the Dutch dairy quotes had been above 51c/L before processing costs were deducted.

Base milk price seen a significant improvement in the month of May, with all of the cooperatives bar two, increasing their price from April.

“Co-op boards need to look very hard at the figures – both income and outgoings -confronting their farmer-suppliers and ask the question: can they really afford not to increase milk price where the market shows that’s merited?

“The boards have to understand that we are well past temporary difficulties now; we are deep into the space where more and more dairy farmers are considering either drastic stock and volume reduction, or even exit, altogether,” Murphy said.

He said that cashflow has “never been as tight”, and that the situation will worsen in the coming months if input usage remains high.

“It’s not only how expensive these inputs are, but the volume that will need to be purchased,” Murphy said.

“There is an overwhelming justification for July’s milk price to increase across the board,” Murphy added.

The ICMSA dairy chair said that an increase in milk price was “never more badly needed”.

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