The ICMSA’s call for the EU-wide introduction of a voluntary milk supply reduction scheme has been rejected by Dairy Industry Ireland (DII).

With base milk prices having nosedived by 15-17c/l over the last six months, ICMSA president Denis Drennan maintained that an EU-wide voluntary milk supply reduction scheme was urgently needed to “put a floor” under the market.

However, DII questioned the benefit and cost-effectiveness of such a move.

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“We do not believe a voluntary reduction scheme would materially influence the global market or its cyclical dynamics, particularly in Ireland which is over 90% export dependent,” a DII spokesman said.

“Such funding would deliver far greater long term value if directed toward generational renewal and supporting sustainable, productive dairy businesses,” the spokesperson added.

“We remain committed to solutions that strengthen farm viability, while maintaining a competitive, future focused sector,” the DII official insisted.

The ICMSA and the European Milk Board (EMB), the umbrella body for EU dairy farmer organisations, contend that milk volumes have to be taken out of the system so that dairy markets can start to recover.

“With global [milk] supplies up 2.3% between January-November 2025, compared to -0.1% between January-November 2024 period, it’s very obvious that the global market is currently oversupplied,” Drennan said.

“The oversupply is global, but the EU can – and should – be fixing what’s within its own power to fix,” the ICMSA leader maintained.

“In 2016, the EU introduced an EU-wide voluntary reduction scheme which provided a payment to individual farmers to voluntarily cut their milk supplies for a specified period. The scheme worked almost immediately by changing market sentiment,” Drennan said.

Just waiting around for the market to “turn up of its own accord” risked inflicting “massive and possibly irreversible damage” on the dairy sector, he warned.

Drennan urged the Government to “throw its full weight” behind the ICMSA and EMB proposal at EU level.