June milk price should hit 30 cents per litre

OVERWHELMING evidence indicates that the minimum milk price for June must be 30 cents per litre, and it’s now up to milk-processor boards to insist that that price is delivered by management.

That’s according to the Irish Creamery Milk Suppliers’ Association (ICMSA), who said there is growing anger amongst farmers supplying lower-paying processors about the price they are receiving.

The ICMSA has claimed that these prices are well behind market returns, and its Chairperson, Ger Quain, said board members need to step up to the plate to bring about some alignment between these prices.

“Given the importance of June milk to the overall financial position of the dairy farmer by year’s end, the milk price paid by all processors must come up to 30 cents per litre minimum for milk supplied in the month,” he said.

“Farmers are very clearly saying that they want their milk price paid in full now and not as retrospective bonuses later in the year.

“ICMSA does not accept milk processors using milk suppliers as a risk management tool by holding milk price at peak and paying bonuses later.

“Everyone accepts that there has been extreme volatility on milk markets since the COVID-19-enforced lock-down.

“But thankfully, markets did not decline as much as anticipated, and markets have rebounded quicker than expected,” he added.

Mr Quain pointed out prices across the market to underline his view that milk processors should be hitting 30 cents per litre for June.

Dutch Dairy quotes for butter/skim milk powder is just shy of 30 cents per litre, a major increase on the mid-April low of less than 23 cents.

The whole milk powder price, meanwhile, sits at 30.14 cents per litre, which is an almostthree-cent increase within that timeframe.

“The GDT [Global Dairy Trade] has also seen three consecutive rises for the first time since January 2020,” Mr Quain added.

“The Index stands at 919 basis points, up from a low of 893 in early May.”