All market indications are positive. We will not tolerate any attempts by processors to dampen the strong trends underpinning milk price, IFA dairy chair Stephen Arthur has said.

The comments came following the fixed milk price scheme announced by Kerry yesterday.

Kerry is offering 32.95c/l ex-VAT at 3.3% protein and 3.6% butterfat for milk supplied from March to October this year.

“European and world dairy market prices continue to strengthen as processors meet to decide milk price for February. Global markets are now buoyant.

“If processors don’t move immediately, it will be a kick in the teeth for farmers,” Arthur said.

“There is plenty of scope for dairy product prices to further increase here as European prices follow global trends.”

Butter, skim milk powder (SMP) and whey prices continue to increase after the price surge witnessed at the latest GDT auction.

European butter prices continue to strengthen with a substantial increase in wholesale prices evident over the past month.