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HomeDairyFarmers expect breaking of 40c/L ceiling to ‘continue’
Catherina Cunnanehttps://www.thatsfarming.com/
Catherina Cunnane hails from a fifth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the company in 2015.
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Farmers expect breaking of 40c/L ceiling to ‘continue’

“The breaking of the 40c/L ceiling is indicative of a trend that the ICMSA expects to continue through at least the first half of 2022.”

There were the words of chairperson of its dairy committee, Noel Murphy, who reacted to Lakeland Dairies’ December 2021 milk price announcement earlier this afternoon (Thursday, January 13th, 2022).

40c/L

In a statement, a spokesperson for the milk processor said:

“In the Republic of Ireland, Lakeland Dairies has increased its milk price by 0.5 cent/litre to pay 40 cent/litre inclusive of lactose bonus and VAT, for milk at 3.6% fat and 3.3% protein.”

“Meanwhile, in Northern Ireland, Lakeland Dairies has increased its milk price by 0.4 p/litre to 31.9p/litre.”

Murphy welcomed the processor’s decision to increase its December base milk price to 40c/L.

On the foot of this, he believes there is still more available from the current market.

Murphy said that the farm group believes that all milk purchasers should pay in excess of 40c/L for December milk.

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He argued that the dairy market data “clearly” shows that a price in excess of that figure is “fully” justified.

Continuing, he said: “ICMSA hopes and expects that the Lakeland announcement will be followed by other milk processors recognising market realities and increasing their price to farmer-suppliers for December milk.”

Other milk price announcements 

Other co-ops will set their milk price in the coming week.

Murphy believes the onus is now “very” firmly on them to follow the Lakelands’ move with matching announcements of their own.

He said the ICMSA also expects “positive” responses to its call for a bonus on all milk produced in 2021.

As we reported last week, the IFA also echoed the view that processors must pay a milk price “well in excess” of 40c/L.

The Ornua PPI for December has climbed to 135.5, an equivalent farm gate price of 41.6c/L (VAT incl).

When adjusted to include the Ornua Value Payment, worth €3.72m, the equivalent farm gate price is 45.6c/L.

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