The Irish Creamery Milk Suppliers' Association (ICMSA) has strongly condemned Dairygold's decision to reduce milk prices by 3c/L for August supplies, highlighting growing tensions in Ireland's agricultural sector similar to challenges faced across other industries including recent market shifts affecting Irish businesses.
Price Cut Details and Farmer Impact
Dairygold announced Tuesday that it would implement a quoted milk price of 45c/L, down from the previous month's 48c/L. This reduction, occurring during a period of broader economic pressures, mirrors the kind of community-level economic challenges that have been affecting various sectors of Irish society.
ICMSA's Strong Opposition
"While dairy markets have weakened in recent weeks, August was a relatively stable month and the ICMSA's firm view is that milk price should be at least 47c/L for the month," stated Noel Murphy, ICMSA's Dairy Committee chairperson.
The decision's impact is substantial, with Murphy highlighting that a typical 500,000L supplier will lose approximately €1,500 for August alone. This economic pressure on local producers comes at a time when Irish communities are showing remarkable resilience across various sectors.
Market Conditions and Future Outlook
- Global dairy prices have seen significant deterioration
- Butter and cheese prices have fallen by over 3c/L
- Increased global milk supply affecting market dynamics
- Weaker consumer sentiment impacting demand
Pat Clancy, Dairygold chairperson, emphasized the challenging timing of these market falls, occurring after peak processing period with seasonally higher stock levels exposed to declining returns. The processor indicates no immediate signs of market recovery in coming months.