Based on the likely Ornua Index, GDT returns and the milk prices quoted from European milk processors, ICMSA Dairy Committee Chairperson, Gerald Quain, said that his organisation is anticipating a milk price rise as Co-op boards meet to set price for January supplies. Mr. Quain noted that Friesland Campina, the giant Dutch Dairy Co-operative, have increased their milk price for February to now stand at €35/100kgs or 33cpl. He said that this is an increase of €0.50 per 100kgs on last month and provided a clear indication of the level of confidence at processor level in mainland Europe which must begin to be reflected in the price being paid Irish milk suppliers by their Co-ops, who are currently paying well below that price level.
“In addition to the stronger Ornua Index, we’d also be looking at the Global Dairy Trade Auction which rose by 1.3%, a consecutive increase that leaves us with nine positive results from the twelve auctions that took place over the last six months. There were notable gains for a number of particular products within the latest GDT auction with butter increasing by 4.9%, WMP increasing by 1% and SMP by 0.1%. These indicators point to a solid dairy market and given the indications that Global milk supplies are expected to remain below previous year levels in most of the key exporting nations – very specifically, New Zealand – in the first half of 2017, with the possibility of some growth in the second half of the year, ICMSA thinks that Co-ops should be focusing on delivering maximum returns in the coming months and ensuring higher milk prices for their suppliers. We’d be looking at a rise of one cent per litre giving an average of 31 C/L for January milk. We know that Co-ops realise that cash-flow is a major issue on dairy farms at this time of year and coming after the milk price depression in 2016, every cent counts. We think and trust that against the background of continuing gains and strengthening of dairy markets that Co-ops will deliver the price rise that the facts support”, said the Dairy Committee Chairperson.
Ends 8 February 2017.
Gerald Quain, 086-3623041
Chairperson, ICMSA Dairy Committee
Cathal MacCarthy, 087-6168758
ICMSA Press Office