Milk Price Has to Reflect Buoyant Dairy Markets

IFA Dairy Chairman Stephen Arthur said co-ops must move to increase prices. 

“All market indications are positive. We will not tolerate any attempts by processors to dampen the strong trends underpinning milk price,” he said.

He made his comments following the fixed milk price scheme announced by Kerry yesterday.

Kerry is offering 34.8cpl (VAT incl) at 3.3% protein and 3.6% butterfat for milk supplied from March to October this year.

“European and world dairy market prices continue to strengthen as processors meet to decide milk price for February.  Global markets are now buoyant. If processors don’t move immediately, it will be a kick in the teeth for farmers,” he said. 

Butter, Skim Milk Powder (SMP) and Whey prices continue to increase across the globe after the price surge witnessed at the latest GDT auction last week. European butter prices continue to strengthen with a substantial increase in wholesale prices evident over the past month.

“There is plenty of scope for dairy product prices to further increase here as European prices follow global trends,” said Stephen Arthur.