The Irish Farmers’ Association (IFA) has claimed that dairy processors are currently attempting to “talk down” the milk price.
IFA National Dairy Committee chair, Stephen Arthur said that although milk prices hit record levels last year, the beginning of 2023 has seen “a softening of global market prices for dairy produce”.
However, he said that the messaging from dairy processors has been “overly negative”.
Arthur called on processors to maximise the milk price this spring.
“At regional meetings across the country and via other communication channels, milk processors have been talking down the milk price, citing the global market downturn.
“Sustaining milk price as we approach peak milk production has to be a priority for every milk processor,” he said.
“The processors were slow to pass on returns when the market was rising but have no problem telling farmers that they will drop prices immediately now that the market is softening,” the IFA Dairy chair added.
Despite global markets being challenging, Arthur noted that the results from the Global Dairy Trade (GDT) auction held yesterday (Tuesday, February 7) in New Zealand were “more positive”.
The auction saw the GDT index record its first increase since December 6, climbing by 3.2%.
“This rise included a 6.6% increase in the butter sub-index. These results indicate a positive signal to the market following weeks of consecutive declines,” the IFA Dairy chair noted.
“Input costs remain high, with the latest Central Statistics Office figures showing that fertiliser prices are 94% higher than 12 months ago, while meal is 33% higher.
“It is vital that our processors continue to support farmers in this high input environment.
“Our production costs remain high; therefore, we cannot sustain significant cuts to our milk price this spring,” Arthur said.