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Farmers will be left frustrated by further cuts to milk price announced by Glanbia and Lakelands, the Irish Creamery and Milk Suppliers Association (ICMSA) dairy chair Gerald Quain has said.
Quain was emphatic that the latest 1c/l cuts must be the last and there could be no further question of a cut for May milk. The cuts mean the average supplier will have lost €2,500 on their milk cheques in the two months since COVID-19 hit.
Quain said it was pointless to deny the impact of the pandemic on dairy markets, however, he added it was equally pointless to deny evidence that markets were quickly rallying. Data from other processors pointed to a strong supply-demand position going forward, he said.
Stability
The ICMSA has stated that the onus is on those who have the resource to absorb as much of impact in the short term as possible. Ordinary milk suppliers were not able to take the full hit and it was up to co-ops to shield them.
“We have to see milk price being consolidated starting next month. Farmer-suppliers have already accepted that this year’s peak production period – during which they would typically make 50% of their annual income in the four months from March to June – is effectively a write-off for 2020,” Quain said.
Speaking with farmers around the country, many are extremely concerned that there will be another price reduction
“The question for the co-ops – and the others agencies charged with selling our superb dairy products – is how we rebuild milk price to a level that allows farmer-suppliers to pay bills and make some kind of income commensurate with their workload, skill and investments.”
Solidarity
The ICMSA’s position was reflected by Fine Gael senator Tim Lombard who called on co-ops to show solidarity with hard pressed farmers by not dropping the price of milk.
Co-ops are currently set to make large profits during the biggest health crisis since 1918
Senator Lombard said: “Speaking with farmers around the country, many are extremely concerned that there will be another price reduction. Our rural farming communities need co-ops to shoulder some of the burden of this economic downturn and offer fair prices for their produce.
“With the reduction in milk purchasing price, co-ops are currently set to make large profits during the biggest health crisis since 1918. If co-ops make such profits in 2020 it will be at a huge cost to the agriculture community.”
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