Liquid Milk Council Report July 2023
- Policy proposals for approval by National Council
N/A
- Market Report (if relevant)
The global market for dairy remains particularly difficult. The expected recovery for the second half of 2023 is delayed. The latest GDT auction (18th July) reported a negative outcome of -1.0%. This is the fourth successive negative auction. In the European market (12th July), Butter is trading at €4605, SMP is at €2355, and WMP is at €3562. The Ornua PPI for June equates to 36.7cpl including VAT. The Ornua Value Payment for June equates to 2.14cpl including VAT. Early Milk price announcements for June would signal further milk price cuts.
May Farm Gate prices at 3.3% protein and 3.6% fat.
The retail price of private label milk is now €1.04 per litre following a 5cpl cut in price in June. This has put significant pressure on the wholesale price of milk and indeed wider pressure on the wholesale price paid for milk that goes into small retail outfits and food service.
- Activity since last National Council
The Chairman met the newly appointed Agri Food Regulator Niamh Lenehen in July and highlighted the concerns of the liquid milk sector and in particular the dominance of private label milk and the downward pressure it exerts on wholesale milk price.
A review of producer organisation legislation by DAFM has commenced. Currently investigating the possibility of including liquid milk into the legislation.
- Any EU/COPA developments
N/A
- Upcoming issues
- Producer groups will begin negotiating prices for this winter.
