April 22, 2010

ICMSA looking for substantial increase on Irish Dairy Board returns for April milk     

Dairy markets over the past few weeks have moved rapidly in a positive direction and these improvements must be acknowledged in full when the Irish Dairy Board sets its April returns to Co-ops, according to Mr. Pat McCormack, Chairperson of ICMSA's Dairy Committee. Mr McCormack said that it was vital that the IDB returns to the Co-ops reflected the up-to-date strength of the dairy markets so that the Co-ops can then pay their farmer suppliers a realistic price enabling the farmers, in turn, to begin 'paying down' the massive debts that many have accumulated during 2009 and the early part of 2010.

Mr McCormack cited two recent developments for his arguments that IDB must review their April price upwards.

-          Dutch quotations for butter, SMP and WMP have increased by €230/t, €260/t and €240/t respectively since the start of April which is an increase of 3.4 cents per litre for the butter/SMP combination and 3.1 cents per litre for WMP. The market return is now nearly 35 cents per litre before processing costs and VAT for butter/SMP and for WMP.

-          The Northern Ireland milk auction increased again in April with the price now in excess of 30.1 cents per litre.

"Along with the substantial increase in the last New Zealand auction, it is quite clear that dairy markets have taken a hugely positive step in the right direction following the improvement in March and dairy farmers are now expecting a significant increase in the Irish Dairy Boards on-account price for April which will be announced in early May", stated Mr McCormack, who farms at Lisheen. For April milk, Mr. McCormack maintains that all Co-ops, whether trading with the Irish Dairy Board or not, should be in a position to announce a significantly improved price and it is essential that they do make such an announcement as dairy farmers need a strong milk price for their peak production months.

With profits of over €30m in 2009 - a year when most dairy farmers lost money - and with the prospect of improved markets gaining strength by the week, the Dairy Board is in a strong position and farmers expect that they will deliver a significantly improved April milk price, concluded Mr. McCormack.

 Ends     22 April 2010.

Pat McCormack, 087-7608958

Chairman, ICMSA Dairy Committee

Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office

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