Dairy industry can build on success of last year, predicts ICMSA

POSITIVE developments in dairy markets during the second half of 2006 means dairy farmers can face 2007 with confidence on milk price, according to the Irish Creamery Milk Suppliers Association.

Chairperson of the Dairy Committee Dominic Cronin said dairy farmers experienced milk price and income difficulties in 2006.

However, despite the efforts of the European Commission to undermine milk price, all main dairy product returns increased in the second half on the EU internal market.

Skimmed milk powder prices increased by €270 per tonne, which is equivalent to 2.4c/litre, while butter and whole milk powder returns increased by 3% and 7% respectively since July.

In addition, indications are world market prices are creeping upwards, pointing to a positive dairy market in 2007.

Mr Cronin said the recent decisions of Kerry and Glanbia, combined with the increased bonus to co-ops from the Irish Dairy Board, are all positive developments and should be set against a background of improving market conditions in the dairy sector.

He said that the ICMSA expects the co-ops to fully pass back the benefits of these market improvements to their farmer-suppliers in 2007.