The current climate for milk prices is relatively good, according to industry experts
Following the announcement of the August Ornua PPI, the chairperson of ICMSA’s dairy committee, Ger Quain, said that the current market continues on a generally positive trajectory following the turmoil of the early part of 2020.
Mr Quain said that looking through the fluctuations of the last three months still showed an underling stability that gave milk-suppliers grounds for optimism on prices moving forward.
“Looking at our milk prices compared to our European neighbours, the LTO calculated monthly milk prices in July 2020 averaged to €32.51 per 100 kg of standard milk.
That’s an increase of €0.21 compared to the previous month. But Irish milk price remains below that average ranging from €1 – €2.21 per 100kg below and we would think that the target has to be reducing that difference and then closing it completely in the coming months. Given the international status of Irish dairy products, we don’t think it’s unreasonable for Irish dairy farmers to expect their milk to be at, or above, the EU average.
“In terms of the Dutch Dairy Quotes for the first week of September, butter and SMP gained ground to the tune of half a cent per litre this week – and that’s significant as the first week of September is traditionally indicative of market sentiment after the August holiday period. WMP powder has also been stable for the last two months and buyers usually set out in earnest out after the summer break so we think this is looking reasonably healthy as well”, said Mr Quain.