Ger Quain: ICMSA expects 30cpl for June milk
Dairy markets have again moved forward during June with all the statistics pointing to improved returns from the marketplace, according to ICMSA dair chairperson Ger Quain.
On that basis, all co-ops should be at least paying 30cpl for milk supplied in June, he said.
Mr Quain said there was growing anger amongst farmers supplying into the lower paying milk processors regarding the price they were receiving for their milk, which was demonstrably behind market returns.
He said that it was up to board members of these processors to insist that milk price was immediately brought into line with market returns.
“Given the importance of June milk to the overall financial position of the dairy farmer by year’s end, the milk price paid by all processors must come up to 30cpl minimum for milk supplied in the month,” he said.
Mr Quain said that farmers were very clearly saying that they wanted their milk price paid in full now and not as rectrospective bonuses later in the year.
“ICMSA does not accept milk processors using milk suppliers as a risk management tool by holding milk price at peak and paying bonuses later,” he warned.
The Ornua PPI for May milk equated to 29.88cpl and markets have moved forward again during June with the expectation is that returns will improve further during July.
“Everyone accepts that there has been extreme volatility on milk markets since the Covid-19 enforced lockdown,” he said, adding that “thankfully, markets did not decline as much as anticipated, and markets have rebounded quicker than expected.”
The ICMSA dairy chair highlighted that the following statistic clearly illustrated the improved market position: current Dutch Dairy quotes for butter / SMP are 29.29cpl are up from their low of 22.8cpl in mid-April and WMP stands at 30.14cpl, up from 28.34cpl in the same timeframe. The GDT had also seen three consecutive rises for the first time since January 2020.
The Index stands at 919 basis points, up from a low of 893 in early May, said the dairy leader.
Mr Quain said that the overwhelming evidence all indicated that the minimum milk price for June milk must be 30cpl and it was up to the boards of all milk processor to insist that this was delivered by management.