Farmers will not be ‘unduly worried’ by dairy price caution, says IFA

DAIRY farmers will keep an eye on short-term milk price caution expressed by giant Dutch co-op FrieslandCampina, but they will not be unduly worried by it, according to IFA dairy chairman Kevin Kiersey.

FrieslandCampina’s business partner Fonterra yesterday decided to maintain its mid-term farmgate milk price forecast despite the Dutch co-op’s cautions about a “stagnant” European market and a drop of more than 15% in dairy market values.

New Zealand-based Fonterra, the world’s top dairy exporter, held at NZ$6.75 (€4.05) per kilo of milk solids its estimate for payouts to its farmers in 2011-12. Fonterra issued its New Year forecast back in May.