July milk prices should reflect stable dairy markets - ICMSA

Co-ops and milk purchasers have been urged by the ICMSA to retain current milk prices, citing stable dairy markets with minimal movement throughout the month.

Chairperson of ICMSA’s Dairy Committee, Noel Murphy was speaking ahead of the July milk price announcement.

“While some spot prices have softened slightly, overall market conditions remain stable and strong,” Mr Murphy asserted. “There is no rational basis for any reduction in milk prices.”

He pointed to strong fundamentals, 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 market prices consistently exceeded 60 cents per litre, reflecting the strength of continental demand.

The ICMSA cited recent data from the European Energy Exchange (EEX) with the July monthly index showing skimmed milk powder averaging at €248/100kg; whole milk powder remaining above €300/100kg.

THey further noted that the Global Dairy Trade (GDT) auction results from mid-July revealed: whole milk powder up 1.7%; and skimmed milk powder up 2.5%.

Mr Murphy emphasised that EU milk deliveries are forecast to decline slightly in 2025 due to regulatory pressures and tight margins, further adjusting downwards supply.

“Given all these indicators, any suggestion of downward pressure on milk prices would be unjustified and out-of-sync with market realities,” he concluded.