2025 milk price should increase slightly - Ornua CEO

The milk price paid to farmers across 2025 should increase slightly on what will be paid to farmers this year, Ornua CEO Conor Galvin has said.

Speaking at the Irish Creamery Milk Suppliers’ Association’s (ICMSA) annual general meeting (AGM), Galvin said he believes if supply and demand holds, a modest increase in milk price could be seen next year.

“My view, I think average milk prices for next year - provided supply doesn’t dwarf the demand that’s there - should hold where they were this year, probably be a bit better. But that’s an average and that’s across the full 12 months,” he said.

However, the Ornua CEO gave a warning to this prediction. He stressed this is an average for the 12 months of 2025 and “where it falls in the year. . .could be a challenge”.

Strong start

Addressing the AGM, Galvin added that a strong milk price will carry into the start of next year, with global supply influencing price thereafter. “We are seeing some of the supply regions’ milk appearing because the milk price is higher. That’s something we need to keep a very close eye on and particularly as we go through our own peak and flush in the first half of the year, that there isn’t product available in markets that give buyers more of a choice.

“I think that will be the challenge to next year, does supply hold at that plus 0.5% to 1% [increase] to match off with demand.

“The piece that is always curious with dairy commodities, it’s the last tonne that prices everything and that can be very frustrating for you, particularly when prices are so volatile.

"It’s good when it’s driving the prices up - when it’s bringing the prices down it’s a much bigger challenge,” he said.

The Ornua CEO added that supplies from strong southern hemisphere milk-producing countries and Europe will be ones to watch.

“I think the piece we need to keep a really close eye on is where the milk supplies land, particularly coming out of the southern hemisphere across their peak, which they are starting to come towards now and then early indications of European milk supply,” he said.