April 09, 2010

Irish Milk Prices Must Rise to Reflect Improved Markets      

With SMP and WMP prices reaching 12 month highs on the world market and Dutch quotations increasing week on week, Mr. Pat McCormack, Chairperson of ICMSA's Dairy Committee said that the March payout from milk processors to farmers should increase to at least 27 cents per litre to reflect the improved returns from the marketplace and given the huge financial pressures on farmers at this time.   

The latest Fonterra auction has seen prices for SMP and WMP increase by on average 26% and 21% respectively and up to 36% for certain contracts.    Dutch quotations for butter and SMP have increased by €50 per tonne and €60 per tonne respectively alone this week, have been increasing for a number of weeks now and are now returning a price in excess of 32 cents per litre before processing costs and excluding VAT.    On this basis, dairy farmers can expect further increases in April milk price according to Mr. McCormack.

It is quite clear that there is considerable room for improvement in dairy product prices in Ireland given developments on EU and world markets and this should be immediately reflected in an increased return to milk producers in the milk cheque for March.    With the huge debt levels on farm both with Co-ops and financial institutions, Co-ops have an obligation at this time to return in full these improved prices so that farmers can get themselves out of financial difficulty as soon as possible.    For the farmers to do this, a strong milk price during the peak production months is absolutely essential, concluded Mr. McCormack.

Ends.     9 April 2010

Pat McCormack,           087-7608958958

Chairman, ICMSA Dairy Committee

Or

Cathal MacCarthy,        087-6168758

ICMSA Press Officer.

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