Milk processors called on to hold current prices
Milk processors have been called on to hold their current milk prices, as they gear up to announce their offerings to suppliers for July.
Ahead of the announcement run of July milk prices, the Irish Creamery Milk Suppliers' Association (ICMSA) cited "stable dairy markets" with minimal movement throughout the month.
Noel Murphy, the chairperson of the ICMSA's dairy committee, said: "While some spot prices have softened slightly, overall market conditions remain stable and strong.
"There is no rational basis for any reduction in milk prices."
According to Murphy, the "fundamentals" of the dairy market have been strong, including Dutch dairy quotes for butter, skimmed milk powder (SMP) and whole milk powder (WMP), which "averaged in the high forties throughout July".
"Italian spot prices consistently exceeded 60c/L, reflecting the strength of continental demand," Murphy said.
He said this view was supported by good recent performances for SMP and WMP on commodity exchanges.
Murphy noted that EU milk supplies are forecasted to decline slightly in 2025 due to regulatory pressures and tight margins, further adjusting downwards supply.
"Given all these indications, any suggestion of downward pressure on milk prices would be unjustified and out-of-sync with market realities," the ICSMA dairy chairperson said.
The Global Dairy Trade (GDT) index saw a second increase in a row this week, after four consecutive decreases throughout May and June.
After the latest trading event on Tuesday (August 5), the index increased by 0.7%, following on from an increase of 1.1% on July 15.
The increase two weeks ago followed on from four consecutive decreases between May 20 and July 1, which ranged from 0.9% to 4.1%.
The index now stands at 1,268. This compares to a 2025 high of 1,344 on May 6.
The May 6 figures was the highest GDT index since June 2022.
Meanwhile, the latest Ornua Purchase Price Index (PPI), for July, implies an indicative return of 45.5c/L, 5.1% VAT inclusive (unchanged from the previous month) for milk at 3.6% fat and 3.3% protein.
The figure is net of Ornua's costs to market, and was determined after deducting the estimated processing cost of 9.3c/L.
