Spot prices for this week have held more or less where they were last week. The weekly Dutch spot prices held at 23c/litre (6 December) for 4.4% fat, ex-factory and excluding taxes. That price is about 3 c/litre under where it was for the same period last year. Similarly, the Italian two-week spot price held at 34.5c/litre this week. That is about where the price was for the same period last year.

On pages 18 & 19 this week, we carry the October international milk league, showing milk prices paid to farmers by global processors.

Our international milk price comparison table is created and standardised at the same milk solids as our Irish monthly milk league, which is 3.43% protein and 3.99% fat.

It is clear that the big players on a European scale are all delivering more than the Irish processors in the monthly league.

Now, this can be for many reasons, but importantly, one is that they are not as dependent on the global market as Ireland and have more product going to higher value outlets.

However, Irish farmers need to ask questions of their representatives on milk price and where the future is.

Farmers need the facts on milk price and the future and depending on what-if scenarios is not a good basis for planning, which we advocate on other pages.

Fonterra

The Fonterra price is coming in on this table at 22c/litre equivalent, which shows the pressure New Zealand dairy farmers are under. They are just past peak milk supply now.

In summary, the large European players are paying out an October price just shy of 30c/litre, which is a nice 5c to 6c/litre ahead of Irish prices for October.

Don’t depend on European supply to fall off a cliff at these prices.