‘The market has moved up and so must milk prices’ - ICMSA
There is “a more positive feel” around upcoming milk price announcements, according to Noel Murphy, Dairy Committee chairperson for the Irish Creamery and Milk Suppliers Association (ICMSA).
Speaking in advance of the upcoming round of price announcements for February supplies, he said that ICMSA expected them to be "tentatively, uplifting”.
Murphy said: “After six months of negative milk prices, the first two months of 2026 have been positive for milk and dairy ‘spot’ markets.
“There has been five consecutive rises in the Global Dairy Trade (GDT) and while the GDT metric may not directly impact Irish and European prices in some cases, the positive sentiment has also been felt on European quotes - it has always been a strong indicator of where milk prices should be going.”
The ICMSA dairy chairperson noted that since the beginning of 2026, “Dutch dairy quotes for the ‘standard’ butter and skim milk powder mix has risen 6.5cpl in that nine-week period and increased 1.5cpl alone in the last week”.
He added that whole milk powder has also “seen gains in that time to the tune of 3cpl, showing a level of confidence in the market that has not been seen in the last six months”.
Farm inputs
Murphy added: “Against the current and ongoing price-gouging we are seeing in farm inputs such as fuel and fertilizer in the last week, and with milk already below the cost of production, every cent will matter to dairy farmers this spring and milk price rises should start immediately.
“Add to that, the longer housing period that cows are currently going through, and we can see why costs are to the forefront of farmers minds.”
"February is not traditionally a ‘big’ supply month with only 4% of the annual supply of a traditional spring herd, but it is still hugely important, and it is usually the first milk payment of the year and so critical to farmer confidence," the ICMSA chairperson said.
He added: “It is time to make that payment a positive one and ensure that 2026 starts on a badly needed ‘upbeat’ note for all dairy farmers.
“The market has moved up and so must milk prices.”
Milk prices
Separately, a recent report from Rabobank found that dairy farmers in Europe are "under significant pressure" because of weak milk and dairy product prices.
Abundant milk globally in general has had a "pronounced impact" on dairy prices according to Rabobank's latest Global Dairy Quarterly report.
Analysts found that fat markets have been hit the hardest, with prices falling by more than 40% from September to February.
