IDB: Dairy prices upturn is fragile

THE upturn in dairy product prices is fragile, the Irish Dairy Board (IDB) has warned in its year-end review of the industry.

IDB interim chief executive Dr Sean Brady said international buyers are fully aware that almost 400,000 tonnes of butter and skim milk powder are being held in storage in the European Union and the United States. As a result, they are tempering their purchases in expectation of a limited release of product on to the market sometime in 2010.

“Such a release could impact on the price gains made in recent months,” said Dr Brady, who noted that EU stocks are running at 270,000 tonnes of skim milk powder and 83,000 tonnes of butter.