The Irish Creamery Milk Suppliers’ Association (ICMSA) has welcomed the move from dairy processor Carbery Group to issue a 5c/L support payment to farmers for March milk, on top of its regular milk price.
Last week Carbery announced both its milk price for March supplies, as well as an additional support payment for its farmer suppliers who are impacted by poor weather conditions.
ICMSA dairy chairperson Noel Murphy singled out the Carbery effort while commenting on the weather-related bonuses announced by processors in recent weeks.
“These weather-related bonuses are timely and very much needed by the co-ops’ supplier members given the very long winter and delayed spring.
“There are signs that just might be ending but it’s going to inflict costs on farmers for many months to come,” Murphy added.
The ICMSA representative said those farmer costs are “across the board”, but the situation places a “special pressure” on those who have purchased fodder.
“[We] believe it is now time for those co-ops or milk purchasers who haven’t paid an appropriate base price or bonuses for March to step up for the April round of announcements,” he said.
“The bills will remain in May and the months ahead and a strong milk price will be required to pay the additional costs and compensate for the reduced volumes.”
Referring to Carbery Group specifically, Murphy said that, while it is ICMSA policy to call on processors to pay the highest possible milk price, processors that “put their shoulder to the wheel” to assist “stressed and and exhausted suppliers” should be acknowledged.
On that basis, he said, Carbery “are to be congratulated for doing just that and setting the example that all should be following”.
Carbery support payment
Carbery announced its 5c/L additional support payment in addition to its base milk price, which increased by 1c/L.
If that base price decision is replicated across the four west Co. Cork co-ops of Bandon, Barryroe, Drinagh and Lisavaird, it will result in an average milk price of 42.19c/L, including VAT, and not including the additional 5c/L.
Commenting on the support payment, Carbery Group chairperson Cormac O’Keefe said: “This has been a very difficult period for farmers and I, along with my fellow board members, strongly believe that we have a duty to support farmers where we can here.
“We hope that this initiative provides some measure of relief for our farmer shareholders,” O’Keefe added.