So low milk supply from the big three European countries - France, Germany and the UK - continues to help the supply-demand balance.

Yes, global milk supply increased in July, but the rate of growth was significantly lower compared with recent months, with negative EU27 flows being the main driver.

Overall, the prediction is that global collections will still expand by 1.5% this year, but there is a lot still to play for on that.

European commodity prices regained much of the losses experienced during the July and early August period, which was quieter than usual.

The European cheese, butter and skim prices all improved in recent weeks, while the casein market has been stable to firm at a high level.


Futures are indicating that prices should remain at current levels for the remainder of quarter three and into quarter four. All eyes will be on China and what happens demand there after that.

So, Dairygold looks to be making a break into the US under its international brand Pastureland following the Glanbia Truly Grass Fed brand launch a while back.

Like Glanbia, Dairygold will argue a rising tide lifts all boats and there is room for everyone. They’ll argue they won’t undercut the market, but, inevitably, they’ll have to, so as to get a foothold in the market.

Dairygold is well able to defend the decision, so that’s their business to do over the coming weeks. The success or otherwise of the move won’t be found out for another few years.


So as owners and significant shareholders of Ornua, now they are selling against the Kerrygold brand. Maybe they are going to differentiate the product, sell in different stores, etc – only time will tell.

Farmers around the board table in Mitchelstown signed off on it. Farmers signed off on something similar in Kilkenny with Truly Grass Fed and then another set of farmers and directors sign off on selling Kerrygold in the US.

The processors argue they have to make a margin and that Ornua is not manufacturing the product, hence the €60 per cow difference between the Ornua index (the PPI) and what the average monthly league price shows us.

The market remains positive, so farmers will be looking to take back some of this margin when co-op boards meet over the coming 10 days.

The farmers didn’t have any success in July, so what are the chances milk price will increase for August?