The PPI index now stands at 105.3, down from 105.4 in February. The latest figure confirms the stabilisation of milk markets as spring-calving herds enter their busiest production season, with virtually no change since the start of the year.

This follows the recovery observed over the second half of last year, during which the PPI rose by 30%.

The current PPI level is equivalent to a farmgate milk price of 29.7c/l excluding VAT. The first co-ops to set their milk price for March have reflected the index’s flatlining, with Glanbia, Lakeland and Kerry keeping their prices unchanged.

In an interview with the Irish Farmers Journal this week, Dairygold chief executive Jim Woulfe said that the recent recovery was driven by supply curtailment, first in the southern hemisphere and then in Europe. He warned that this was “not a very sound basis actually for long-term recovery, because we one would always prefer to have a demand-based recovery”.

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