There is a shine on global dairy markets, but supply isn’t ramping up as it might because the costs of inputs is through the roof, and this influences decisions strongly where milk is produced indoors.
We only have to look across the water where the UK has just concluded a trade deal with New Zealand.
Staying across the water, despite soaring dairy commodity prices and several milk processors paying more than 30pence per litre, the Agriculture and Horticulture Development Board (AHDB) is predicting falling milk volumes and the likelihood is volumes will be revised downwards again as the higher input prices bite at farm level.
Some are suggesting that processors are back out looking for new suppliers at the moment to meet rising demand.
So after a period of no movement in milk circles between processors, they are on the hunt again for new supply.
How quickly it turns when the demand is there, the money is there and the squeeze comes on.
Hitting a ceiling
The Irish dairy industry gathered in Tipperary Co-op on Friday to unveil a new dryer, but, at this point in time, it looks like the Irish dairy industry is hitting a ceiling on supply.
Some of those in attendance in Tipperary were suggesting this was going to be the last most significant milk processing investment in the short term of this recent wave of Irish investment to manage post-2015 milk increase.
Others suggested significant global demand could turn the EU policy of farming the environment around very quickly. We’ll just have to wait and see.