The results of our survey of Irish milk processors this week suggest 2015 milk price was supported to the tune of over €100m. Patrick Donohoe and Jack Kennedy report.
Irish milk processors suggest the first half of 2016 will be challenging.
ADVERTISEMENT
Most Irish milk processors have confirmed to the Irish Farmers Journal this week that they supported monthly milk price by between 2c and 3c/litre on average in 2015.
In total, this means global market returns were supported by over €100m during the course of the year. This equates to about €80 per cow on Irish dairy farms. The net result will mean the average 2015 milk price paid to Irish dairy farmers will come in at over 30.0c/litre, which processors claim is higher than direct product market returns in 2015.
In response to questions from the Irish Farmers Journal, all processors said the first half of 2016 would be challenging and suggested milk price will depend on global milk supply and particularly European milk supply stabilising. However, the strength of butter and cheese and a strong US dollar were helping market returns and the hope is that will continue into 2016. There are tentative signs that Chinese demand for powders is rising.
ADVERTISEMENT
Dutch brakes on
There was industry surprise on Monday when large Dutch processor Friesland Campina introduced a 2c/litre bonus to suppliers who maintain or cut production for the first six weeks of 2016 compared with a supply reference period (13 to 27 December). The aim is to reduce supply because processing capacity is temporarily unavailable.
Closer to home, Dairy Crest has finally exited the UK dairy sector with the completion of its sale to Germany’s Müller Group after a year-long competition authority review. Chief executive Mark Allen is reported to have said milk production is better off in the hands of co-operatives or private companies rather than publicly quoted companies.
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Most Irish milk processors have confirmed to the Irish Farmers Journal this week that they supported monthly milk price by between 2c and 3c/litre on average in 2015.
In total, this means global market returns were supported by over €100m during the course of the year. This equates to about €80 per cow on Irish dairy farms. The net result will mean the average 2015 milk price paid to Irish dairy farmers will come in at over 30.0c/litre, which processors claim is higher than direct product market returns in 2015.
In response to questions from the Irish Farmers Journal, all processors said the first half of 2016 would be challenging and suggested milk price will depend on global milk supply and particularly European milk supply stabilising. However, the strength of butter and cheese and a strong US dollar were helping market returns and the hope is that will continue into 2016. There are tentative signs that Chinese demand for powders is rising.
Dutch brakes on
There was industry surprise on Monday when large Dutch processor Friesland Campina introduced a 2c/litre bonus to suppliers who maintain or cut production for the first six weeks of 2016 compared with a supply reference period (13 to 27 December). The aim is to reduce supply because processing capacity is temporarily unavailable.
Closer to home, Dairy Crest has finally exited the UK dairy sector with the completion of its sale to Germany’s Müller Group after a year-long competition authority review. Chief executive Mark Allen is reported to have said milk production is better off in the hands of co-operatives or private companies rather than publicly quoted companies.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS