Holding milk prices steady is "essential to protect farm viability", the Irish Creamery Milk Suppliers' Association (ICMSA) has said.

Processors will announce their prices for June supplies in the coming days, with Lakeland Dairies the first to announce this week that its base price remains unchanged.

ICMSA dairy committee chair Noel Murphy said that milk suppliers are "walking a fine line", and while production is strong, "margins remain tight due to cost of production".

Following a positive month on dairy markets, Murphy said there is "no conceivable scenario for cuts to June milk price and, moreover, farmers would not entertain the idea of cuts to the price they receive for the second highest supply month on most farms".

According to the US Department of Agriculture (USDA) July 2025 dairy market outlook, the US all-milk price forecast has also increased to $21.95 per hundredweight, up $0.35 from the previous estimate.

The ICMSA said this suggests a balanced market where supply growth is being met with steady demand. 

Murphy also cited the fact that prices in the southern hemisphere are also showing positive signals, per the latest price forecast from Fonterra.

“Obviously our focus is primarily on Europe and Ireland in terms of prices and trends and our export destinations and those are all showing encouraging resilience," Murphy explained.

"Dutch dairy quotes increased almost a cent per litre for whole milk powder mix and the industry standard indicator butter / skimmed milk powder increased marginally by 0.5c with some fluctuations in the timeframe over the four weeks of June."

Murphy said that the data is "unambiguous".

“There should be no negativity around milk price at present and processors should be looking to increase prices – certainly not wasting their time peddling the notion that we are in a negative space," he added.

"There are enough external factors to be worrying about - including trade tensions and fluctuating export demand – without making up imaginary pressures on milk price that are nowhere supported by the data and facts in the marketplace."