ICMSA predicts strong milk prices as it calls for co-ops adjustment

DAIRY farmers can expect a strong and improved milk price for 2011, according to the ICMSA’s latest projections.

Chairman of its dairy committee, Pat McCormack, said dairy markets are strong and improving. The dairy group leader added that farmers would need stronger prices in 2011 in order to keep pace with anticipated increases in input costs.

The latest Global Dairy Trade milk auction in New Zealand highlights the improving market situation, with January prices on average 7.1% higher than its auction before Christmas.

Quotations for dairy products published last week show that the improvements in powder prices has continued into January with butter prices also showing an improvement.

Mr McCormack said co-ops must now adjust their December milk price to reflect the improved price situation.

“The ICMSA again repeats its view that co-ops who have yet to pay an end of year bonus should now do so as there is now no excuse for holding onto the additional profits made in 2010,” he said.