The brief respite at the Global Dairy Trade (GDT) is over after a second consecutive fall this week.

The average price across all products was $2,569/t, down $166 on the last result.

The sluggish markets are again being attributed to high levels of stocks building internationally, especially powder and despite a decline in New Zealand production.

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New Zealand output was down by 7.5% in September and could decline by as much as 10% should an El Nino event occur in the winter of 2015 and 2016.

All the while, there are indications of a slight pickup in demand from China but in small volumes at this stage.

Meanwhile, IFA Dairy Committee chair Seán O’Leary said his committee will commence lobbying of co-ops to hold October milk prices in anticipation of what is expected to be a tough spring 2016.

“The IFA National Dairy Committee had set out its strategy to actively lobby co-op board members to hold the October milk price, and build upon the constructive relationship created during the year,” O’Leary said.

Price hit

“Farmers have taken a massive milk price hit of 13 c/l in 18 months which will, when current exceptionally high volumes and constituent levels drop, cripple their farm cash flow next spring, even if there are no further price adjustment in the interim.

“This 33% price decrease is equivalent to a total decimation of their margin – a 93% fall,” O’Leary added.