Farmers expect co-ops to be upbeat over milk prices after latest report.

Dairy farmers expect their co-ops to remain cautiously optimistic about milk prices for 2012, based upon the latest Rabobank Global Dairy Outlook.

IFA dairy expert Kevin Kiersey said the Rabobank report follows several upbeat reports backing a strong milk price. As a result, he is urging co-op boards to hold milk prices at least for spring.

“Despite global economic concerns, Rabobank’s 2012 to 2015 study, forecasts solid demand growth at 2.5% per annum, as against 1.6% in 2011,” said Mr Kiersey. “Most of the demand is expected from emerging countries, giving opportunities for the world’s dairy export regions, making dairy the envy of the food world.