The first Milk Price Tracker of 2024 saw an increase in the base price from all 15 co-ops included, but some co-ops are ‘trailing along’, according to Irish Creamery Milk Suppliers’ Association (ICMSA) dairy committee chairperson, Noel Murphy.
The Milk Price Tracker – brought to you by Agriland in collaboration with the ICMSA – details milk prices from the most significant Irish dairy co-ops each month.
Speaking after the release of the Milk Price Tracker for January 2024, Murphy called on the co-ops who he said where ‘trailing along’ on base milk price, to improve in line with markets.
The Milk Price Tracker is the most in-depth and technically accommodating price comparison available to Irish dairy farmers and industry as a whole.
He said that while the maximum attainable price improved the positioning of some co-ops in terms of the ‘big picture’, once some of the seasonal bonuses are removed in the coming month, the issue of low base price will again come to the fore and base price will have to improve.
Milk Price Tracker
The Milk Price Tracker for January 2024, revealed that Strathroy led the way with a base price of 39c/L, with Lakeland Dairies in second place with a base price of 38.4c/L
This is based solely on base milk price, even though some milk suppliers would have received a higher price from other co-ops who gave additional payments to all eligible suppliers.
Lisavaird was bottom of the table with a base price of 36.47c/L, but the four Carbery co-ops are paying 2c/L payment from the stability fund.
Commenting on the milk prices for January, Murphy said there was a substantial range from top to bottom in terms of base price and it would be important that this deficit is closed by those at the lower end by improving base price.
Image source: Don Moloney
He said that February has been a positive month in terms of dairy product prices and that – apart from a slightly stagnant January – this positive market trend has been ongoing since last September.
Murphy said that it is now imperative that those improvements make their way back and in full to the farm gate as soon as possible.
“Co-ops were very quick in spring 2023 to pull milk prices by large amounts and we do need to see strong signals with the same commitment in the opposite direction now,” he said.
“While there are several early season bonuses being paid by the different milk purchasers, ICMSA does not favour these types of discretionary bonuses.
“If they can be given then they can just as easily be withdrawn – and we think that paying the highest base price is always a better, more transparent, and more substantial method of paying for milk,” he added.
“The market sentiment and trends all justify that increase in base price and we are waiting to hear it announced in the upcoming round of February milk price announcements.”