Dairy farmers 'losing patience' with prices being paid for milk
The ICMSA dairy chairman Noel Murphy said that the "current bounce in milk markets across the globe is a welcome and ongoing development".
Dairy farmers are "losing patience" as market improvements are not being reflected in the prices paid out in monthly prices, the Irish Creamery Milk Suppliers Association has said.
The ICMSA dairy chairman Noel Murphy said that the "current bounce in milk markets across the globe is a welcome and ongoing development", but he warned that Irish milk suppliers are "losing patience as the bounce fails to materialise in their farm gate prices".
Mr Murphy noted that 2023 had seen "significant falls in spot markets from the high of 2022 with resultant falls in farm gate prices of 20c/litre or higher" in the first half of the year.
"The falls in price some farmers experienced were in some cases higher than the total price received by some as recently as 2016," the ICMSA said.
Mr Murphy said that when markets "turned positive for the duration and to the degree we had seen recently, then farm gate prices simply had to follow".
Mr Murphy said that this demonstrably had not happened for October prices "when some co-ops decided that there was still time for deductions".
"The Ornua PPI is running at 36.1c/litre for October but there are many falling up to 3c/litre short of that amount and that gap needs to be narrowed and eliminated in the coming months if farmers are to have confidence in their milk purchasers," Mr Murphy said.
"Since the lowest ebb of Dutch dairy quotes in late August, the industry-standard butter and skim milk powder mix are up almost 10.5c/litre and the whole milk powder returns have increased almost 8cpl.
"This is a three-month-long sustained increase unprecedented in 2023 and shows conclusively that there is increased confidence in the market."
Mr Murphy said that this confidence and level of trade has to be reflected in higher prices to farmers supplying those co-ops.
"That confidence and level of trade must be reflected in higher prices to farmers supplying those co-ops," he continued.
"It’s worth drawing attention to the fact that those farmer-suppliers have endured a miserable year where costs of production have not eased back to original levels and are currently hovering around breakeven with the prices being paid by their co-ops."
