Ireland’s Irish Creamery Milk Suppliers’ Association (ICMSA) has urged dairy cooperatives to maintain a fair base milk price of $0.54 per liter for February 2024. The call follows recent price cuts by Lakeland Dairies and Kerry Dairy Ireland, which reduced base rates by $0.01 per liter. ICMSA criticizes co-ops for fragmenting prices and argues that strong market conditions justify keeping base prices stable.
The Irish Creamery Milk Suppliers’ Association (ICMSA), a leading advocacy group for dairy farmers in Ireland, is calling for cooperatives to maintain a base milk price of $0.54 per liter for February 2024. The association has criticized recent price cuts by major co-ops, including Lakeland Dairies and Kerry Dairy Ireland, arguing that farmers deserve stability amid strong market conditions.
Concerns Over Fragmented Pricing
Noel Murphy, chair of the ICMSA’s dairy committee, has condemned co-ops for fragmenting milk prices, stating that certain bonuses should be incorporated into the base rate instead of being presented as optional top-ups. “It’s a bad habit and is usually employed to deliberately obscure mediocre base price,” Murphy remarked.
Lakeland Dairies and Kerry Dairy Ireland, two major players in Ireland’s dairy sector, recently reduced their base prices by $0.01 per liter. While Kerry Dairy Ireland had initially increased its January payout to $0.58 per liter with bonuses, the February cut has raised concerns among farmers.
Market Justification for Price Stability
Murphy emphasized that the dairy market remains strong, particularly for butter, making the price cuts unnecessary. He pointed out that Lakeland Dairies’ February pricing announcement seemed stable at first, but the removal of early calving bonuses resulted in a lower effective price for many farmers.
ICMSA is now urging cooperatives to restore a fair base price of $0.54 per liter and eliminate fragmented pricing tactics. The association believes that fair pricing is essential for farmers to sustain their operations and maintain Ireland’s dairy production capacity.
