ICMSA Milk Price Tracker is now widely considered the industry standard metric
Don Icmsa Pic: Moloney Chair, In On Charleville, Quain, Farm Creggane, His Dairy Co Mittee, Limerick Ger
Just months after its launch, it is already obvious that the ICMSA Milk Price Tracker — available on the ICMSA's own website and through Agriland — is now well on its way to being accepted as the industry standard comparison metric.
The reaction from dairy farmers has been overwhelmingly positive and though we’re sure that certain co-ops would have preferred if their suppliers had not been given this kind of analysis, it is very notable that not a single co-op has been able to complain on grounds of inaccuracy or miscalculation.
They might certainly have preferred if ICMSA had not developed the Milk Price Tracker in the first place, but they cannot find any flaw on our methodology or figures.
The data the Tracker provides is invaluable for both individual farmers and in terms of giving us an overall view of prices paid to all suppliers by all co-ops.
For instance, Figure 1, shows the weighted average prices paid by each Co-op over the period to the end of August. At a glance, farmers can see where their Co-op stands over that period.
The weighted average price is calculated using milk supply data from the Central Statistics Office and it is important to note that this weight will change over the course of 2021 as more data for the later months’ milk price and supply data is announced.
Irish c/L milk prices — quoted in the table — is a base price at the ‘standard’ fat and protein percentages cited by most co-ops (i.e., 3.3% protein and 3.6% fat). The Tracker also includes base prices at ‘standard’ European criteria (i.e., 3.4% protein and 4.2% fat).
The Maximum Attainable Price show the price that a farmer would receive if all qualifying bonuses were achieved in that given month. This data has been sourced from suppliers’ milk statements and is based on the most up-to-date figures and clarifications available.
If that kind of data works for individual comparisons, Figure 2 below illustrates why we have developed an overview capacity that serves to show that second only to what farmers get paid is when farmers receive that price.
Again, we can see at a glance how the year’s supplies into processors breaks down month-by-month and how the volumes are completely lopsided towards the peak production period.
That’s why it’s so critical to yearly net figures that peak production supply gets the appropriate price and that’s why ICMSA was so critical of what it described as a “systematic” underpayment for peak production supplies this year. We estimate that a 500,000L supplier was underpaid by approximately €3,000 for their May, June and July supplies and just studying the table below should show you why the co-ops were tempted to underpay and how much money they withheld from their farmer-suppliers.
Members who want some question answered on the applications of the Milk Price Tracker or who wish to point out some aspect that they think can be improved are encouraged to contact Paul Smyth, Secretary to ICMSA Dairy Committee at 061-314677.
