An underlying stability to a “generally positive trajectory” for dairy markets is grounds for optimism for milk supplier on prices, according to the Irish Creamery and Milk Suppliers Association (ICMSA).

ICMSA dairy chair Ger Quain said following turmoil in the early part of 2020, markets were generally on the up. He acknowledged there had been some fluctuations in the last three months, but added markets had stabilised.

“Looking at our milk prices compared to our European neighbours, the LTO calculated monthly milk prices in July 2020 averaged to €32.51 per 100kg of standard milk. That’s an increase of €0.21 compared to the previous month.

“But Irish milk price remains below that average ranging from €1-€2.21 per 100kg below and we would think that the target has to be reducing that difference and then closing it completely in the coming months.”

Irish price

Quain said the international status of Irish dairy products meant it was not unreasonable for dairy farmers to expect their milk to be at, or above, the EU average.

Based on Dutch dairy quotes, butter and skim milk powder gained ground to the tune of half a cent per litre for the first week of September

“That’s significant as the first week of September is traditionally indicative of market sentiment after the August holiday period,” Quain pointed out.

Whole milk powder has also been stable for the last two months, he said, and buyers usually set out in earnest out after the summer break.

“So we think this is looking reasonably healthy as well,” Quain concluded.

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