Dairygold chief executive Jim Woulfe says the outlook for farmgate milk prices in 2021 is quite positive, based on the current supply and demand balance in global markets.
Speaking to the Irish Farmers Journal, Woulfe said the demand for dairy is already quite strong, while milk supply in many key regions has been muted.
“I think it’s fair to say 2021 is going to be a good year for dairy. Milk supply has been quite toned down so far this year and the prospects on the demand side are good,” said Woulfe.
“The demand for dairy ingredients is already strong and we’re likely going to see a rebound in demand from the food service industry.
“We can already see the green shoots in the UK, with demand returning. We’re starting to get the very first orders of 2021 being placed by food service customers, albeit at small levels,” he added.
Woulfe said the only cause for concern in global dairy markets right now was the US, where milk production has been on a strong upward trajectory over the last year.
The Dairygold boss said food support programmes and other Government stimulus packages were underpinning dairy market prices in the US right now.
Outside of the US, Woulfe said the rest of the global dairy market was in a good position for 2021.