Boosted by the poor weather conditions in Europe this spring, dairy markets are continuing to improve and should translate into positive returns to dairy farmers in the coming months, according to ICMSA Dairy Chairman, Mr. Gerald Quain.
“We think the increased demand for SMP from Intervention and the lack of any negative impact on price is quite significant. We expect that the positive market sentiment will continue and we can’t see any reason why dairy farmers cannot receive better prices in the next number of months to make up for the very expensive spring period. The speculation that the European Commission is ready to move to two sales of SMP each month show the renewed interest and demand within the market for dairy products resulting from spring peak failing to hit the production highs expected. Dutch Dairy Quotes spot prices continued to improve last week with the butter/SMP mix returning 37.2cpl after processing and including VAT, while WMP returned 32.1cpl using the same format with butter prices in particular moving ahead in the last number of weeks.
The next round of Co-op price announcements need to signal a movement towards positive steps on milk price and the basis for reductions is completely gone at this stage, concluded”, said Mr. Quain.
Ends 6 June 2018
Ger Quain, 086-3623041
Chairperson, ICMSA Dairy Committee
Cathal MacCarthy, 087-6168758
ICMSA Press Office