Lakeland, Glanbia, Kerry and Carbery have all cut the base May milk price this week. Cuts ranged from 0.5-1.5c/l, with farmgate ex-VAT price now as low as 21.4c (Kerry).

All have supported the farmgate price to some extent, either with the balance of the one-off Ornua bonus or co-op support to members (see table) .

Farmers are furious that the May price cuts come as serious signs of dairy markets strengthening emerge and supplies hit peak.

Lower than expected milk volumes and expectations that grain price will rise are driving global dairy markets up. Reports this week from the UK and the US suggest milk prices are taking a turn upwards. Trends are very definitely upwards for butter and cheese.

Large Dutch processor FrieslandCampina released a statement explaining it was going to increase the sale price for cheese and that it had been paying an “irresponsibly” low milk price to Dutch farmers for months. A war of words has broken out between the IFA and Glanbia over the fact that the Glanbia (GII) base price has dropped below 20c/litre to 19c/litre excluding VAT.

Despite the fact Glanbia is supporting May price by 3c/litre to members, IFA dairy chair Sean O’Leary and president Joe Healy both came out strongly against the cuts.

IFA president Joe Healy said: “This level of milk price cut, coming just as signs of market improvements are starting to show in earnest, can only be perceived by farmers as cynical in the extreme.”

Sean O’Leary said: “The reality is that GIanbia has set itself up with the lowest milk purchasing milk price, relying on co-op and other contributions to remain outwardly relatively competitive with mid-league milk purchasers.”