The Irish Creamery Milk Suppliers’ Association (ICMSA) has said that it “absolutely expects” an increase in October milk prices on the back of a “mini rally” in dairy markets.
The chair of the association’s dairy committee, Noel Murphy said that all co-ops and milk purchasers must reflect the on-going buoyancy in the milk market.
He said that there were some “very questionable differences” in the prices being paid by various co-ops.
ICMSA
Murphy said that there were only two payments left in the year that would allow “a degree of necessary realignment”.
“The weather has really been a tonic for all farmers this autumn and the higher price for milk has encouraged Irish dairy farmers to produce higher volumes in this back end.
“The weather is saving considerable fodder and the situation of farmers – certainly in terms of stress and mental wellbeing – is in a better place and contrasts favourably with the levels of pressure they were under in spring and early summer.
“Dairy markets are ticking upwards steadily, and those better prices are being used to pay down the bills incurred during that very difficult spring and early summer period,” he said.
Milk price
The ICMSA Dairy chair stressed the importance of co-ops and processors recognising and following-up on that positive feeling among dairy farmers.
“That means paying the farmer-suppliers the increase that the co-ops are themselves receiving – and we mean all the co-ops and processors paying that increase due.
“We absolutely expect that not least because of the mini rally on the butter side again with gains posted in the last two week or so, it will be interesting to see if these gains continue for the month.
“There is no doubt that markets are in a positive place resulting in yet another rise in the Ornua Purchase Price Index (PPI) for October and a positive Global Dairy Trade (GDT) auction.
“The fact that the volumes are reflects that tentative restoration of confidence and also gives farmers a chance to earn more based on higher prices for higher volumes,” Murphy said.