The Irish Creamery Milk Suppliers’ Association (ICMSA) has stated that Lakeland Dairies’ move to pay farmers 1.2c/l less than Ornua’s purchase price index (PPI) for August is unjustified and unacceptable.

ICMSA dairy committee chair Noel Murphy questioned the reason for Lakeland Dairies’ most recent price cut of 1.5c/l when processing energy costs have come back.

“There is something seriously wrong with our milk price at present relative to other EU countries and this Lakelands’ decision to pay an August milk price below the Ornua PPI is simply unacceptable and highlights the need for co-op boards to ensure that the PPI is the minimum price paid to farmer suppliers,” said Murphy.

“And bearing in mind, many farmers are producing milk below the cost of production and every cent is absolutely critical in the current climate.”

'Easy option'

The dairy committee chair asked whether Irish milk processors are taking the “easy option” of cutting farmgate milk price instead of seeking higher prices from the marketplace.

“There are a couple of irrefutable facts now that are asking hard questions directly of our processors,” he continued.

“Irish farmers' sustainability statistics are among the best globally. We operate a grass-based system of production almost unique in the EU, we are fully quality assured and we are getting paid the worst price in the EU.”

Lakeland Dairies cuts milk price for August

Lakeland August price below Ornua's PPI 'unacceptable' to ICMSA

The ICMSA has called for the Ornua PPI to be the minimum milk price paid by co-ops.