17th November 2001
News
17th November 2001
News |
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NI milk auction price crash
By James Campbell Prices for milk crashed to just over 16 pence per litre at this week's auction by United Dairy Farmers in Belfast. The average price of 16.26 p/litre for milk to be supplied in December, was more than 7 p/litre below the average at the corresponding auction last year and more than 4 p/litre below any previous spot auction at this time of year. It was more than 2 p/litre below last month's spot auction average and less than a penny above the 15.39p/l obtained at the height of the FMD crisis last April. Tuesday's auction involved 43.5 million litres rather than the 5 to 10 million litres which is normally offered for monthly "spot auction". The added volume came from the rejection by processors of "option milk" to which they were entitled on longer term contracts. As previously reported in the Journal, this milk was thrown back into the market by processors in an attempt to reduce huge losses currently being accumulated as market prices fall week on week for milk powder and other dairy products. Latest reports indicate that butter invention stores have opened in Britain and the Netherlands this week. Member States already operating intervention last month bought in 6300 tonnes of butter (about 5 per cent of EU production). There is over 160,000 tonnes of butter in private storage, which must be sold by March 2002. With milk powder prices seriously affected and having no access to intervention support, the Ulster Farmers' Union and NI Dairy Association were among several lobby groups in Brussels last week pressing the EU Commission for dairy export refunds to be reinstated. UFU President Douglas Rowe said that hard commercial evidence had been presented to the Commission and UK Government officials to explain the need for export refunds to keep NI dairy products moving on international markets. He said that urgent action is needed to avoid major problems next Spring. The EU Dairy Management Committee is due to consider the issue in detail today (Thursday). |
Copyright © : The Irish Farmers Journal 2001 |
