'No justification' for further reductions in milk prices
The Irish Creamery Milk Suppliers' Association (ICMSA) has said there would be "no justification" for reductions in January milk prices.
ICMSA dairy committee chairperson Noel Murphy spoke in advance of the January round of milk price announcements by milk processors.
Murphy has insisted that "any temptation on the part of co-ops to cut prices further must be knocked on the head immediately".
“The markets have stabilised in the last six weeks and shown enough positive indicators in that time to suggest that the bottom of the market has been reached," Murphy said.
"There’s actually a sign of a slight uptick emerging in powder prices.
"We have seen three positive GDT auctions in a row and Dutch dairy quotations are trending upwards."
Below cost of production
Murphy said that dairy farmers are receiving prices "now below the costs of production", and therefore, every cent will count in 2026.
"The duty of co-ops in this scenario is clear; they have to deliver every possible cent they can to their farmer-suppliers and cut costs to the bone within the co-op," Murphy continued.
"Farmers cannot be expected to carry all the pain for the kind of price collapse we have seen."
Murphy praised last month’s decision by Tirlán to hold milk price for January and February supplies, describing it as a "welcome move".
The dairy committee chairperson said it "gave farmer-suppliers some degree of certainty and the financial room to plan their spring accordingly".
Murphy added: “We know that the Ornua PPI has moved downwards for January, but it is reflecting the current prices paid before added value at 34c/L.
"This indicates that base prices should not be below this level."
2026 shaping up to be 'tough' year
Murphy said that 2026 was shaping up to be a "tough one", taking into account the first six weeks of weather and the collapsed milk price.
He said that his most earnest wish is that "finally some focus will be given to the ruinous effect on family farms of uncontrollable price and income volatility".
Murphy added that there are solutions available to the government to address this issue, which he described as being the "single biggest obstacle to dairy farm succession".
