With butter markets flourishing as of late it seems prices are only going to get higher. With such high demand at the moment and a tight supply of stock its expected prices will rise further.
The European Commission released a milk production forecast recently. They expect production to increase by 0.6% in 2017 across the EU. This despite the fact the markets are performing at 2% worse than the same stage last year.
The Commission also made a prediction for Irish milk production numbers. They expect milk production to increase by up to 5% this year.
It is expected that increased butter prices will only spell good news for milk prices also, with butter in tight supplies and in such high demand. That being said there is pressure exerted from
other markets which may hamper any potential price rise. The expected recovery of the fluctuating New Zealand market tied in with the growth experienced in the US milk market are said to
be reasons prices may be affected.
It is expected that an increased consumption of dairy products around Europe will be experienced. It is expected that consumption will rise by up to 1m tonnes up from last year’s 1.5 tonnes.
Exports throughout Europe are expected to rise also but at a more gradual pace for butter, cheese and liquid milk products.
Imports have increased dramatically, for example imports to China in April this year had risen by 34%.
Imports of WMP were up by almost 3.1% although this is still a 3% drop on last year’s numbers from the same period of time.
May forecasts released for the month of may expect production to rise by up to 8% with Irish farmers expected to surpass the one billion litres range.
Glanbia, Dairygold and Kerry all reported increases in their volumes for the month of May. Glanbia are up 8%, as are Bandon co-op and Barryroe co-op, Daiirygold are up 7.5% and Kerry
Overall the market looks good with prices still on the rise, and an increased, high demand for products.