Farmer-suppliers would be left “frustrated” by the announcement of further milk price cuts for April – but this latest cut must be the last, according to the Irish Creamery Milk Suppliers’ Association (ICMSA).
Commenting on the recent price cuts by Glanbia and Lakeland, ICMSA dairy chairman Ger Quain stressed that there could be no question of a cut for May milk.
While acknowledging Covid-19’s impact on dairy markets, Quain stressed that there is plenty of evidence that markets are rallying quickly, adding that “data from other processors already points to a strong supply-demand position going forward”.
The ICMSA’s position is that there is an onus on those with the resources to take the hit to absorb as much of the severe short-term hit as possible, the chairman said.
Ordinary milk suppliers, he noted, are not in a position to take the full impact of the hit and it is therefore up to their co-ops to shield them as much as possible.
“We have to see milk price being consolidated starting next month,” Quain said.
“Farmer-suppliers have already accepted that this year’s peak production period – during which they would typically make 50% of their annual income in the four months from March to June – is effectively a write-off for 2020.
The question for the co-ops – and the others agencies charged with selling our superb dairy products – is how we rebuild milk price to a level that allows farmer-suppliers to pay bills and make some kind of income commensurate with their workload, skill and investments.
“That consolidation job has to start next month,” Quain concluded.