ICMSA predicting milk base price of 30c/L plus next spring

Milk prices next spring should be in excess of 30c/L, according to ICMSA Deputy President Pat McCormack.

The dairy futures markets are reflecting a steady demand for milk for the next six months, he said.

“That will bring us through to next spring. After that, international supply and demand factors will determine the tone of the markets.”

McCormack was speaking on Day One of this year’s National Ploughing Championships.

“Sentiment is now a key factor in determining the actual strength, or otherwise, of commercial dairy markets. And all the signals are suggesting that market sentiment will continue to grow positively over the coming months.”

McCormack said that the EU Voluntary Milk Reduction Scheme will act to further strengthen farmgate milk prices.

I am not surprised at the level of farmer response to the measure. For the first time, Irish milk producers have an option in the way they manage their businesses. And this is extremely positive.

“Last June the processors were telling us that the prospects of seeing a lift in milk prices before the end of 2016. However, the introduction of the Voluntary Milk Reduction Scheme has helped to change this sentiment entirely.”

Turning to the implementation of the EU Exceptional Adjustment Aid package, McCormack said that the Minister for Agriculture, Michael Creed should agree the national top-up, provided for under the scheme, as a matter of priority.

“We want to see the money made available in the form of a flat rate payment to all dairy farmers.

“The EU introduced the support measure as an aid scheme for milk producers and ICMSA expects Minister Creed to support this principle.

“And there is precedence for this approach to be taken, given the aid schemes that were previously introduced in 2009 and 2015.”