The positive momentum in global dairy markets continued this week with the New Zealand GDT auction up 1.3% – the third consecutive rise at a time when the New Zealand dairy industry is producing a lot of milk.
Closer to home, Lakeland, Glanbia and Kerry have all lifted November milk price over the last week while other co-ops are meeting this week to set price. Glanbia lifted 0.5c/l for November with a biodiversity bonus to take it to 29.9c/l excluding VAT at 3.3% protein and 3.6% fat. Lakeland introduced an unconditional 1c/l November bonus to take it to 31.6c/l at 3.3% protein and 3.6% fat. Kerry also decided to lift milk price by 0.5c/l for November to take it to 29.9c/l excluding VAT at base solids.
Internationally, FrieslandCampina lifted December milk price and Fonterra strengthened its milk price forecast.
In light of the positive auction from this week’s GDT, which solidifies the upward trend in milk prices, IFA dairy chair Tom Phelan said it is imperative that remaining milk processors increase price for November.
ICMSA’s Ger Quain said that while nobody imagined November price was hugely significant in terms of revenue at this time of the year, it would serve as a realistic platform for price in spring 2021 and those production months that were more significant in annual income terms. It seems obvious that milk purchasers are hedging on the results of the crisis EU-UK trade talks.