The Chairperson of ICMSA’s Dairy Committee has called on all Co-op Boards to set a milk price for February of at least 32 cpl describing that price as “fully justified and based comfortably on market returns”.
Mr. Quain said that despite the reductions in the GDT (Global Dairy Trade Auctions) in the last month, global demand for dairy products continues to grow at 1.5% -2% per annum and global milk supplies in January 2017 have started 1.7% below January 2016 levels with milk supplies lower in all the major exporting regions apart from the USA. Mr. Quain continued to note that milk supplies in the EU – the region where the majority of Irish dairy exports end up – are 3% lower.
“The low milk prices of 2016 have resulted in a sharp fall-off in milk supplies and ICMSA expects this to continue for the first half of 2017, which will have a positive impact on market returns. The Ornua Purchasing Price Index returns for February 2017 remained fixed at 105.4 or 31.4 cpl, but this is based on a processing cost of 6.5 cpl which we’ve always felt is is overly generous to the processors.