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The Irish Creamery Milk Supplier Association (ICMSA) has called for the price of December's milk to be maintained and continue the trend begun last autumn.
The association’s Dairy Committee chair, Noel Murphy, has indicated confidence that the December milk prices due to be announced in the coming days will continue to move ahead positively.
While volumes are low for December, it’s an important month for cashflow purposes as many farmers may not receive another milk payment until mid-March.
Murphy said that the market has shown itself to be robust in the last month given that the annual Christmas bulk purchasing would have occurred before that period.
“There remains no significant increase in milk supplies across the globe and with that in mind, we need to protect and encourage those who are supplying milk in Ireland now and into the future,” he said.
“The only way to maintain supply and encourage the next generation to opt positively for farming is to maintain a high milk price that can deliver a consistently good income comparable with other sectors of the economy.
End-of-year bonuses
There was a slight decrease for products in the most recent Global Dairy Trade, but Murphy said that this will not dampen what is still a high market for dairy products.
He said that markets are returning close to 50c/l after processing costs for all product mixes and have been at or above this level for the whole month of December.
In addition, Murphy added that there is still time for those co-ops and milk purchasers who have not paid an end-of-year bonus to do so now, particularly those at the bottom of the milk price league.
“These processors are costing their suppliers badly needed revenues and at least paying the bonus would get 2025 off to a really positive and start delivering cashflow for the vital January/February period.
“With demand remaining steady and supply tight, milk price should be particularly positive for the coming quarter, and that is needed to restore farmer confidence after a very difficult 2024.”
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