The Carbery Group has confirmed a milk price for June of approximately 28.9c/L (including VAT and an SCC bonus of 0.5c/L).

A Carbery spokesperson said the board sets its milk price on a monthly basis, based on its ability to support the milk price.

“And this will continue to be the case over the next quarter.”

Dairygold is paying 27c/L for June milk, down 1c/L on the previous month. The co-op is also confirming that milk supplies are currently running 16% higher than for the same period of 2014/15.

Commenting, ICMSA President John Comer said that the world is currently over supplied with dairy products.

“And markets have responded accordingly.

“I am not in a position to predict how world dairy markets will react over the coming months. But the results of this week’s GDT auction would not inspire any great confidence for the future.”

Comer believes the European Commission has failed to act on the challenge of price volatility.

“We have been highlighting this issue for the past four years and still Brussels refuses to act.  The Commission must act now to put a 28c/L price floor to intervention. This would show international milk buyers that someone is actually in control of dairy policy within the EU.

“A move of this nature would also encourage milk buyers to become more proactive in the market place.”

Comer is also concerned that a further fall in milk prices will significantly increase indebtedness levels on Irish dairy farms.

“We met the banks back in the spring, at which stage they indicated their general willingness to look at moratoria on recently agreed loans, should milk prices fall.

“But it was made quite clear that it would be up to individual farmers to fight their own corner on this matter. But the fundamental reality remains that the banks will play a key role in keeping many family owned dairy farms afloat over the coming months.”

The ICMSA president indicated that only a significant cut back in global milk output would lead to an upturn in dairy prices.

“There is talk of an El Nino effect kicking in across the southern hemisphere over the coming months,” he said.

“California is ravaged by drought at the present time. But only time will tell if these weather related developments will have an impact on global milk production.”