The dairy chair of the Irish Farmers’ Association (IFA), Stephen Arthur has called on all milk processors to hold milk prices at their current level.
With processors expected to set milk prices for September supplies next week, Arthur said that the current global dairy outlook means prices can hold.
After what he described as a “turbulent” August in terms of global dairy markets, the chair said that early indications suggest that markets have “turned the corner”.
Milk prices
The last three Global Dairy Trade (GDT) auctions reported positive trends, while both European and US dairy markets have also strengthened, he said.
The GDT price index rose by 4.4% at the latest event on October 3, and now stands at 953. In total, 38,350MT was sold with an average price of $3,104/MT.
“While it is early days, the recent positive sentiment in markets gives dairy processors much more confidence in terms of the short to medium-term outlook.
“Input costs on farms remain stubbornly high. This combined with continued difficult weather conditions has led to a substantial increase in the costs of production.
“Every cent is needed on farms to cover current outgoings,” the IFA dairy chair said ahead of milk price announcements next week.
Global Dairy Trade
Anhydrous milk fat, butter, butter milk powder, cheddar, lactose, skim milk powder (SMP), and whole milk powder (WMP) was sold at the latest GDT event.
The price index for anhydrous milk fat rose by 3.7% to $4,979/MT, while the price index for butter and butter milk powder saw an increase also.
Butter was traded at a price index of $4,806/MT, which is 1.3% higher than at the previous event. The butter milk powder price index rose slightly by 0.6% to $2,245/MT.
The price index of cheddar continued to fall at 4.8% to $3,853/MT today. Also recording a decline, the price index of lactose dropped by 1.3% to $594/MT.
