Despite the strong supply situation globally, dairy markets over the past month have shown perceptible improvements and Irish dairy farmers expect that these developments will be reflected in the Irish Dairy Board price index for June, according to Mr. Pat McCormack, Deputy President and Chairperson of ICMSA’s Dairy Committee.
Mr. McCormack noted that prices on ‘spot’ milk markets have improved with the Dutch Dairy quotes running close to 4% higher for butter than this time last month, whey increasing by 3% and WMP remaining stable. In Italy, for instance, the ‘spot’ milk price increased by 10.5% in the last four weeks and in the Netherlands, the ‘spot’ milk price increased by 22% since late April. The Global Dairy Trade Auction has also increased after falling in the previous months. EU average prices for most dairy commodities have shown positive movements over the last month and for last week, according to EU Commission internal data, butter, SMP, WMP, Cheddar and whey powder have all increased. With indications of a drought impacting on milk production in parts of the USA, the strong growth in global supplies could very quickly come to a halt and the market will return to an even stronger position, according to the ICMSA Deputy President.
Dairy markets are in a significantly better place this month and dairy farmers rightly expect that this will be reflected in the Irish Dairy Board index given its strong basket of products, brands and market presence. The follow-on from that is that processors should be able to take a more positive perspective when setting their June milk price. “There had been a measurable rebound across all categories in recent weeks. That rebound needs to reflected when the price for June milk is set”, said the ICMSA Deputy President.
Ends 30 June 2014.
Pat McCormack, 087-7608958
Deputy President, ICMSA.
Cathal MacCarthy, 087-6168758
ICMSA Press Office