Tipperary farming: ICMSA is expecting 36cpl for May milk
The chairperson of ICMSA’s Dairy Committee has said that the association’s analysis of current dairy prices indicates a price of 36cpl.
Ger Quain said he expected that to be the price announced for May supplies when the processors decide over the next few weeks.
Mr Quain said that close study of current market conditions and trends showed that most milk purchasers and co-ops had held back slightly on April milk price for their supplier-members.
“Some of the processors did increase price for April supplies. But some - inexplicably - did not. That means that that price rise is already overdue and will certainly have to be passed back in the next announcement for May supplies.
“The Ornua PPI is 34.15cpl excluding added value of over 2cpl, meaning that there is a larger difference being left between what the processors got and what they passed on. We expect that to be closed in the upcoming round of price announcements,” said Mr Quain.
He said that there was a “low and slow” feel to some of this that’s making milk suppliers suspicious. We were seeing the second bounce of 2021 dairy markets when some farmers had still not got the benefits of the first bounce, he said.
“The most recent milk market developments have seen all products increase with the industry standard butter/SMP mix rising by the equivalent of 1.5cpl in the last two weeks. WMP increased by a cent per litre in the same timeframe, according to Dutch Dairy Quotations.
"These increases need to be translated into farm price in the next price announcement, otherwise farmers will suspect that the prices is being held back till we’re past peak production and farmer milk volumes fall,” said the dairy committee chairperson.
Subscribe or register today to discover more from DonegalLive.ie
Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.
Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.