ICMSA says global dairy market recovering and milk price rise due
The ICMSA has said that two major market indicators showed further positive moves yesterday (15 August) and have clearly highlighted the ongoing momentum in the recovery in dairy product prices.
Pat McCormack, the deputy president of the specialist dairy farmers’ organisation, noted that milk supply pressures are beginning to emerge globally – particularly in the US and EU, Mr. McCormack said that the outlook for milk price is certainly more positive than two months ago and yesterday’s increases in both the Global Dairy Trade Auction and the Dutch Dairy Quotations point to a quickly recovering market. The ICMSA spokesman said that the 7.8% increase in the Global Dairy Trade auction reflects the pressure on global supplies while the Dutch dairy quotations are reflecting a stronger market for dairy products in the EU. He said that the Dutch quotations have shown steady improvements since May, particularly since the start of August, to the point that the butter/SMP combination is now 6.4 cents per litre higher than the mid-May level. But the improving prices go right across the product range: Since 16 May 2012, the butter, WMP, SMP and whey prices have increased by 17%, 10%, 34% and 22% respectively, noted Mr McCormack.
Dairy markets went through a difficult period in the first half of 2012 but now have turned a corner and it is absolutely essential that our processors and the Irish Dairy Board return the maximum possible price at this time given the pressures on farmers. A substantial milk price rise is due immediately, said Mr McCormack.
Ends 16 August 2012.
Pat McCormack, 087-7608958
Deputy President of ICMSA and Chairman of the Dairy Committee
Cathal MacCarthy, 087-6168758,
ICMSA Press Office