The minimum price acceptable for dairy farmers to receive for July milk supplied is 57c/l, says the Irish Creamery Milk Suppliers Association (ICMSA).

ICMSA dairy chair Noel Murphy went as far as to predict that dairy co-ops are set to announce such a milk price.

He was speaking in advance of the imminent round of milk price announcements for July milk by Ireland’s dairy co-ops.

Murphy noted that the Ornua base purchasing price index (PPI) is returning over 57c/l before added value and he said that markets have now stabilised at this higher level.

“Returns from across the globe remain strong in what has been a solid year so far for dairy product despite the easing of prices on wholesale markets such as the GDT in the last number of weeks,” he said.

‘Underlying strength’

The Kerry dairy farmer noted that Dutch dairy quote returns for butter and skimmed milk powder “dipped below 60c/l in July despite returning prices above 60c/l since the middle of March, earlier this year”.

He said a similar pattern has also emerged for whole milk powder.

“We are taking this as the traditional settling down and reduction in trading associated with the holiday period but the underlying strength cannot be doubted and the minimum price that we’ll accept as presenting that strong market is 57c/l going forward in the final quarter of the year”, said Murphy.

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