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11 Dec 2024
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The Irish Creamery Milk Suppliers’ Association (ICMSA) has called on all milk processors to pay an end-of-year bonus to all their suppliers.
Milk processors urged to pay end-of-year bonus to suppliers

The Irish Creamery Milk Suppliers’ Association (ICMSA) has called on all milk processors to pay an end-of-year bonus to all their suppliers.

The chairperson of ICMSA’s Dairy Committee, Noel Murphy, wants those at the bottom of the milk price league to be be particularly generous in ensuring that their suppliers receive a milk price comparable with the top payers in the country.

Murphy said that while the weather conditions and the strong milk price in autumn 2024 have been a boost to all farmers and improved confidence and morale, that did not overhaul the extreme difficulties experienced over the previous 18 months.

The association has said that farmers were still playing ‘catch up’ in terms of paying bills.

Murphy stated: “For November milk, the market has remained in a strong position with the [Ornnua] PPI, the GDT [Global Dairy Trade] and Dutch dairy quotations all moving forward.

“The average EU price for November is expected to be in excess of 53c/L and given the Irish product mix, farmers can legitimately expect a milk price at this level.

“In relation to an end-of-year bonus, the reality is that milk processor employees in many cases do get such a bonus and ICMSA’s opinion is that the milk suppliers – who are after an extremely difficult period and are the basis for everything else – should also be in line for a bonus.

“Milk supply was extremely challenging throughout the year and while dairy markets thankfully moved in an upward trajectory, that good price only arrived when milk volumes were low. We would hold that the milk price being paid was behind market returns for much of this year,” Murphy added.

The ICMSA said it believes that milk processors have the scope to pay an end-of-year bonus and wants processors to deliver a “timely confidence boost” to their milk suppliers.

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Fonterra has been dragged into a social media uproar after it was accused of having unsafe dairy products because of the co-operative’s links to Bovaer, the supplement fed to cows to reduce emissions.

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