An October milk price of more than 40c/L has been predicted by the Irish Creamery Milk Suppliers’ Association (ICMSA).
Following a meeting of its dairy committee today (Wednesday, November 10), the ICMSA’s dairy committee chair, Gerald Quain said they expect processors to announce a price that will be in excess of 40c/L when prices are revealed in the coming week.
“The serious upward momentum behind the rise in dairy markets should result in substantial rises in base milk prices for October milk,” he said.
“Even without added value, the Ornua purchase price index (PPI) is showing prices rising by over 1c/L and, when added value is accounted for, the price is well in excess of 40c/L.”
This confirmation from Ornua of price increases is well below the price increases seen in Dutch and European quotes during last month, said the dairy committee chair.
“Dutch quotes show the standard butter and skim milk powder (SMP) mix surging over 7c/L in the last five weeks while whole milk powder (WMP) increased by 5c/L in the same period.”
Dairy farming is entering an uncertain period in terms of regulation, climate mitigation and input costs increases, and the price that farmers receive is going to have to reflect these new realities, he said.
“Milk production is going to become significantly more expensive in 2022 and no one could or should expect that they could continue making the farmer-suppliers carry the increased costs.
“The transition to greater sustainability means an end to the ‘cheap food’ era and retailers and consumers are going to have to begin paying what it actually costs to get that product to their fridge.”