The Irish Creamery Milk Suppliers’ Association (ICMSA) has called on processors to recognise strengthening global dairy markets and deliver base milk prices of at least 48c/l for August supplies.

The association’s dairy committee stated that a 48c/l August milk price is justified by market trends in butter and whole milk powder, as it cited 17% and 11% price increases for these commodities respectively.

Co-op boards should use these market revenues to help address the “crisis of confidence at farm level” as farmers’ bills mount, according to ICMSA committee chair Noel Murphy.

'Strong signal'

“They need to send a strong signal to their farmer suppliers that the market improvements that have taken place over the last six weeks are noted and being fed through to the price farmers receive,” he said.

“We know that 48c/l is justified by analysing the markets - all have moved forward considerably from the EU to New Zealand to the USA, with butter - a key product for Irish processors - moving forward very strongly."

Murphy stated that “easily verifiable rises” in dairy commodity prices make a strong case for the ICMSA’s calls.

“The GDT has also moved forward over that period and so will the Ornua PPI in due course.

“We are adamant that a price of 48c/l for last month’s milk supplied is absolutely in line with the markets the co-ops are selling into and that is the price those co-ops must pay us farmers,” he added.