ICMSA: 50c/L base price ‘fully justified' for May milk
The chair of the association's dairy committee, Noel Murphy, made the comments ahead of milk price announcements for last month from co-ops.
He said that co-op boards 'should resist any attempt for milk price reductions for May given the current conditions in the marketplace'.
Noel Murphy, ICMSA Dairy Committee chair. Image: Domnick Walsh Eye Focus
Murphy said that 'milk supplies globally and in particular in the EU remain constrained'.
'There is no evidence to suggest that milk supplies will increase to any great extent in the foreseeable future while demand for dairy products is strengthening in advance of the holiday period and dairy demand is looking strong in the medium term.
'The Global Dairy Trade (GDT) is higher today than it was at the start of 2025, the average milk price across the EU is at 53c/kg while the Dutch quotations have shown improvements in the order of 2c/L over the course of May,' he said.
'It would be simply unacceptable for milk processors, some of whom are conditioning farmers for a reduction, to cut milk prices to boost their own profits for 2025.
'The reality is that no one else in the milk processor supply chain will be taking or expected to take a cut,' he added.
'Co-op boards are fully justified in insisting that milk price is set at least at 50c/L for May milk and provide dairy farmers with the confidence to invest in their business and for the next generation to reconsider dairying as an attractive option for their future career.
'It is clear at this stage that dairy markets are relatively stable and dairy farmers expect at a minimum that their milk will remain stable or else move up to 50c/L if currently below that level,' Murphy said.
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