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Her comments come as the GDT surged almost 13% yesterday as the recovery in dairy markets begins to gather some real momentum. This comes two weeks after a 7% lift at the previous auction.
The main driver of the upswing came from whole milk powder (WMP), with average prices increasing a whopping 20%.
However, Talbot warned that it may take time for this to be reflected in the current milk price paid to suppliers.
“One GDT does not make trend”, she said, adding that: “It’s hard to see anything too dramatic in the current year because of contract positions that are already in place.”
She welcomed the improvement in sentiment and that it is good for all stakeholders in the industry.
She explained that the current market is ultimately going to be about holding demand levels up.
“On the positive side, supply is coming back in certain regions. However, there are high stock positions in other regions which will counter balance this.”
Talbot also said that the price of oil was influencing demand in certain oil-producing regions.
On Wednesday, Glanbia reported an 11% increase in reported earnings for the first half of 2016. Performance nutrition continued to drive performance, with earnings up 35% to €81.7m.
While revenues fell 1.7% to €1.84bn as a result of challenged dairy markets globally, margins expanded 110 basis points to 9.6%.
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