Speaking to the Irish Farmers Journal at the Bord Bia’s Brexit Barometer on Thursday, Woulfe admitted that the recent dramatic surge in butter prices have left the market unsustainable.
“While we would all love the butter prices to be sustainable, I don’t believe it is. How could it really be?
"Just think of it, in April and May of 2016, which is only 14 months ago you were dealing with butter at about €2,500/t and now in the spot market it is over €6,000/t. Like that is not a sustainable market. That is a .com,’’ Woulfe explained.
Don’t get me wrong, we all enjoy prices like this
“Like everything, in an unregulated market [the price will drop] when supply catches up. That is going to be the issue that will bring about a curtailment or correction,” the Limerick native continued.
While Woulfe admits that the markets will eventually return to equilibrium, the Irish dairy industry is enjoying this period of high price.
“Now we don’t want to see it happening, don’t get me wrong, we all enjoy prices like this and we strive to do the upmost to maximise returns but in that kind of a movement, in that sort of a period, you have to say it is hardly sustainable,” Woulfe concluded.
The recent surge in price has been fuelled predominantly by increased demand from the US. The quarterly GDT report showed butter prices rising 17% in Q2 of 2017, the highest price recorded since the GDT’s establishment.
Read more
Concentration of Irish cheddar in UK ‘high risk’
Cheesed off – finding a future home for 20% of Ireland’s milk
GDT price index shows a 12% quarterly rise
Speaking to the Irish Farmers Journal at the Bord Bia’s Brexit Barometer on Thursday, Woulfe admitted that the recent dramatic surge in butter prices have left the market unsustainable.
“While we would all love the butter prices to be sustainable, I don’t believe it is. How could it really be?
"Just think of it, in April and May of 2016, which is only 14 months ago you were dealing with butter at about €2,500/t and now in the spot market it is over €6,000/t. Like that is not a sustainable market. That is a .com,’’ Woulfe explained.
Don’t get me wrong, we all enjoy prices like this
“Like everything, in an unregulated market [the price will drop] when supply catches up. That is going to be the issue that will bring about a curtailment or correction,” the Limerick native continued.
While Woulfe admits that the markets will eventually return to equilibrium, the Irish dairy industry is enjoying this period of high price.
“Now we don’t want to see it happening, don’t get me wrong, we all enjoy prices like this and we strive to do the upmost to maximise returns but in that kind of a movement, in that sort of a period, you have to say it is hardly sustainable,” Woulfe concluded.
The recent surge in price has been fuelled predominantly by increased demand from the US. The quarterly GDT report showed butter prices rising 17% in Q2 of 2017, the highest price recorded since the GDT’s establishment.
Read more
Concentration of Irish cheddar in UK ‘high risk’
Cheesed off – finding a future home for 20% of Ireland’s milk
GDT price index shows a 12% quarterly rise
SHARING OPTIONS