The average price of butter has dropped by 12.4% to €5,112/t, according to the Milk Market Observatory (MMO).
The average price of skimmed milk powder (SMP) has dropped by 3.7% to €1,530, which is below the intervention price.
Currently, 380,000t of SMP is held in intervention by the European Commission to help stabilise the milk powder market.
The Irish Farmers Journal understands that a buyer recently offered €800/t for all the SMP held in storage. The offer was substantially lower than the intervention price, and rejected by the Commission.
The average price of milk in the September across the EU has remained stable at 36.72c/l for raw milk.
It marks a significant increase compared to last year’s average milk price in September, which stood at 29.93c/l.
Market demand this summer helped to drive up the price of milk, but butter prices have dipped as milk production has increased.
However, the MMO states that milk production in the EU is set to rise from 164.2m tonnes to 166.2m tonnes, even though they predict that the number of dairy cows in Europe will decrease slightly from 23.2m to 23m in 2018.
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The average price of butter has dropped by 12.4% to €5,112/t, according to the Milk Market Observatory (MMO).
The average price of skimmed milk powder (SMP) has dropped by 3.7% to €1,530, which is below the intervention price.
Currently, 380,000t of SMP is held in intervention by the European Commission to help stabilise the milk powder market.
The Irish Farmers Journal understands that a buyer recently offered €800/t for all the SMP held in storage. The offer was substantially lower than the intervention price, and rejected by the Commission.
The average price of milk in the September across the EU has remained stable at 36.72c/l for raw milk.
It marks a significant increase compared to last year’s average milk price in September, which stood at 29.93c/l.
Market demand this summer helped to drive up the price of milk, but butter prices have dipped as milk production has increased.
However, the MMO states that milk production in the EU is set to rise from 164.2m tonnes to 166.2m tonnes, even though they predict that the number of dairy cows in Europe will decrease slightly from 23.2m to 23m in 2018.
Read more
Co-ops set October milk prices
Environmental challenge is not going away – Hogan
Lakeland re-offers fixed milk price
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