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27/09/2021

Tipperary farming: ICMSA says June milk should be 36.5cpl

Tipperary farming: ICMSA says June milk should be 36.5cpl

Tipperary farming: ICMSA says June milk should be 36.5cpl

Based on current markets, the base milk price paid by all processors for July milk must be at least 36.5cpl according to Gerald Quain, chairperson of ICMSA’s dairy committee.

Mr Quain said that processors must stop holding back on the milk price paid to their supplier farmers, many of whom were experiencing substantial cost increases on inputs often purchased from the same milk processor.

“The facts speak for themselves,” he saids. “The base Ornua PPI is at 35.5cpl for July milk and with an additional €10.05m paid to processors on top of this, and dairy markets broadly stable, farmers are fully entitled to expect a base price of 36.5cpl for the milk supplied in July.”

Mr Quain said ICMSA thought that was entirely reasonable and did not even take into account that milk processors had been holding back on milk price for a number of months and increasing their own profits at the expenses of their suppliers.

Mr Quain noted that for June milk, no less than nine milk processors failed to even pay the equivalent of the base Ornua PPI, while five processors were only marginally ahead of it.

“It is worth noting that this is the PPI that was significantly altered with a higher milk processing cost of 7cpl factored-in at the request of the co-ops,” he said.

The ICMSA chair said that farmers were entirely justified in asking where the €9.67m Ornua Value payment paid on June milk had gone.

This return had been delivered from the marketplace, but farmers did not see its benefit in June, or, indeed, any of the previous months.

“We want co-op boards to insist that management pay out in full the market return, including the Ornua Value Payment.

“As far as we’re concerned that translates to a base milk price of at least 36.5cpl for July milk.
“It’s time – and past time – that farmers got their fair share of strong dairy markets,” said Mr Quain.

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