With recent high prices received on the butter markets, as well as lifts in other areas of the dairy sector, it has been said by IFA’s National Dairy Chairman, Sean O’ Leary, that a return to farm gate milk prices could be achieved.
The recent GDT auctions after five consecutive auction price increases, have allowed for a 2c/litre rise from April milk prices.
April prices in Ireland remained at approx. 30c/litre, although as mentioned this has risen by almost two cents per litre in May.
In recent releases by the EU milk Market Observatory it was shown that butter prices again increased on the EU markets, this time by a huge €210 per tonne. This equates an increase of over
18% on last year. Other dairy commodities also seen an improvement with SMP up by €100 per tonne on last month (7%), Cheddar has risen by €130 p/t in the space of two months,(5.5%)
while WMP has received an increase of almost €170 p/t in the past four weeks, an increase of 6.5% from last year. Whey powder prices rose steadily up by €80 p/tonne (7%).
Meanwhile Intervention volumes have been steadily decreasing over the last number of weeks. For the first time since the end of March no Skimmed Milk powder has been placed into intervention.
All bids were rejected at the last sale of SMP in intervention measures, with the maximum price of €163.41/100kg offered. SMP prices in Ireland have risen to €188 per 100kgs, while butter prices in Ireland are now up at €485 per 100kgs.