Speaking at a joint Macra na Feirme and AIB conference in Kilkenny on Thursday night, Molloy said that, looking into the future, prices should settle somewhere between 30c/l and 32c/l.
“The market at the moment would suggest that the long-term milk average point will be somewhere between 30(c/l) and 32c/l. At this level, the market can absorb the price, the processors can work efficiently and the farmers can operate while generating a margin,” Molloy said.
Molloy also expressed personal concerns over high milk prices, advising farmers to “be warned” about the implications of higher price returns.
“Personally, I think that late 30c (/litre) price points is not a good outcome for Irish farmers. This will encourage other high-cost producers to produce higher quantities, which is not a good place to be.”
Molloy was also positive about the level of uptake on the fixed-margin price schemes, which he believes will rise above 40% participation rate on foot of recent volatility in the market.
“Today, we have about 40% of our farmers and on average they have about 30% of their milk in scheme. My anticipation is that 40% will grow because there is a great understanding now of the need to proof against volatility. With that growth, I am hopeful that the average uptake will also increase,” he said.
Molloy was one of four guest speakers at the Macra/AIB event, which heard representatives from Embrace, AIB, the Irish Farmers Journal and the Land Mobility Service.
Listen to “The growth of fixed milk price schemes at Glanbia” on Spreaker.
