ICMSA say latest milk price cuts opening up ‘alarming disparities in payments’

Following the recent series of September price cut announcements by Co-ops and processors right across the country, the Chairperson of ICMSA’s Dairy Committee, Noel Murphy, has questioned the disparity between prices now applicable across the country and said the differences now evident are alarming.

"We are not naive and don’t expect Co-ops to beat the market. This current phase and market is putting suppliers under real pressure and we have to deal with that – what we have much more trouble dealing with is the frankly very alarming differences in prices now being paid by the Co-ops and we think that this is becoming even more of an issue. We now have almost a 5cpl litre difference in base price for September milk supplied from top to bottom and this is a staggering difference for farmers delivering essentially the same product but getting paid by different processors. We estimate over €2000 of a difference in returns if suppling 45,000 litres in September. This is very difficult to take or rationalise where you have neighbouring farmers experiencing that kind of differential for the same amount of milk supplied. These are alarming disparities in payments", said Mr. Murphy.