In a statement this week, the chair of the Ulster Farmers’ Union (UFU) dairy committee, William Irvine has highlighted a growing optimism for a steady milk price over the coming months, after dairy commodities returned higher than expected prices in early 2018.

“Commodity prices in early 2018 are providing better returns than what was anticipated at the end of 2017, with butter seeing a €500/t increase in the Netherlands,” pointed out Irvine.

He added that only skimmed milk powder (SMP) has experienced lower prices this year. There is also the overhang of 370,000t of SMP in EU intervention stores. “However, in relation to the NI product mix, unlike butter and cheese, SMP is not a significant part of the local mix and therefore, its price does not affect local farmgate prices,” said Irvine.

The outlook for SMP may be set to improve as EU exports of the product are growing, fuelled by increasing demand in China. EU production of SMP also fell 2.6% in 2017. “In light of these facts, the UFU expects to see a stabilisation in base milk prices as we approach the spring,” concluded Irvine.

Auction

This week’s GDT auction recorded a slight decrease 0.6% in the overall index price, which now stands at US $3,593/t.

Butter fell 1% with whole milk powder (WMP) down 0.8%. Cheddar prices rose 1.7% with skim price rising sharply by 5.5%. Butter prices fell €50/t to €4,800/t at this week’s Dutch Dairy Board auction, but prices are still €700 higher than where they started off in 2018.

SMP prices were unchanged at a rock bottom price of €1,320/t with WMP prices holding steady on €2,620/t.

Dale Farm tests for drug residues

The largest dairy co-op in NI, Dale Farm, has announced that it is implementing wider screening and more sensitive testing of milk tankers, and of producer samples, for drug residues in milk. A series of open meetings are also being held this month to address the topic of responsible use of medicines in dairying.

One of the main challenges that lies ahead is concern around the blanket use of antibiotic dry cow therapy at drying off. Also, a number of commonly used drugs to treat respiratory infections, and to kill liver fluke, are not licensed for use in lactating animals or pregnant cows. Advice should be sought from a vet.