June 9th, 2010

ICMSA say Kerry’s 30c/litre is the new benchmark

Dairy markets were again stronger in May and these improvements have been acknowledged by the Kerry decision to set a milk price of 30 cents per litre for last month’s milk, according to Mr. Pat McCormack, Chairperson of ICMSA’s Dairy Committee. The Dairy Committee Chairman stated that this price must now serve as the benchmark for all co-ops and processors as their boards meet over the next week or so to set the May price. Mr McCormack said that there was already a suspicious lag opening up between the prices being paid on international markets and the prices being paid to Irish milk suppliers. ICMSA, he said, would not countenance a situation where milk suppliers were left struggling with the debts accumulated in 2009 and the early part of 2010 while their co-ops and processors replenished their own reserves by not passing back the improved prices or delaying the payment of better prices. Mr McCormack said the facts were clear and supported an immediate price rise across the board.

Dutch quotations for butter, SMP and WMP have increased by €250/t, €120/t and €150/t
respectively since the start of May which is an increase of 2.2 cents per litre for the butter/SMP combination and 2 cents per litre for WMP. The market return is now over 38 cents per litre before processing costs and VAT for butter/SMP and for WMP.
- The Northern Ireland milk auction increased again in May with the price now in excess of 31.1 cents per litre being paid to farmers.

“In 2009, when markets were falling, the Irish Dairy Board and Co-ops were very quick to pass back the downturn in price to dairy farmers. The opposite is now happening and Co-ops Boards must immediately pass the full benefits of the upturn in price back to their suppliers who are still under the most severe pressure imaginable, concluded Mr. McCormack.

Ends. 2 June 2010.

Pat McCormack, 087-7608958
Chairman, ICMSA Dairy Committee.

Or

Cathal MacCarthy, 087-6168758
ICMSA Press Office

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