The current returns coming from dairy commodity markets mean September base prices of over 35p/l cannot be sustained this autumn, representatives from across the industry have said.
Market returns have collapsed on the back of strong milk supplies both domestically and internationally, which has led to a build-up of stocks. With excess supply, commodity buyers have stood back in the expectation of lower prices.
“Production has ramped up since August across Europe – no one could have predicted the massive jump in supply that has happened,” commented one source.
ADVERTISEMENT
Writing to his suppliers, Leprino Foods CEO Paul Vernon noted that cheese prices were down £1,000/t in recent weeks and butter down £1,700/t, which has impacted returns for cream. He said he had no option but to start to reflect that in farmgate prices, with Leprino down 2.25p for September, taking its base to 35p/l.
“Given the current market returns we would anticipate further decreases in milk price in the coming months. Market returns today would indicate a milk price of circa 30p/l but I would caveat this by saying that markets have not yet shown any signs of bottoming out,” he said.
Continued on page 4
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.
The current returns coming from dairy commodity markets mean September base prices of over 35p/l cannot be sustained this autumn, representatives from across the industry have said.
Market returns have collapsed on the back of strong milk supplies both domestically and internationally, which has led to a build-up of stocks. With excess supply, commodity buyers have stood back in the expectation of lower prices.
“Production has ramped up since August across Europe – no one could have predicted the massive jump in supply that has happened,” commented one source.
Writing to his suppliers, Leprino Foods CEO Paul Vernon noted that cheese prices were down £1,000/t in recent weeks and butter down £1,700/t, which has impacted returns for cream. He said he had no option but to start to reflect that in farmgate prices, with Leprino down 2.25p for September, taking its base to 35p/l.
“Given the current market returns we would anticipate further decreases in milk price in the coming months. Market returns today would indicate a milk price of circa 30p/l but I would caveat this by saying that markets have not yet shown any signs of bottoming out,” he said.
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