Dairy sector facing uncomfortable decisions
It commenced operations as Bord Bainne but evolved into the IDB as it built a major marketing and distribution platform largely focused on finding markets for Irish dairy products. In other words, it works at the coalface of the milk market.
When the IDB made some frank and honest remarks about international dairy markets last week it caught my full attention. It is effectively warning that dairy markets are under pressure from a variety of sources and weak prices are the result. Milk powders and butter are declining at a relatively rapid pace, particularly on spot markets. The Global Dairy Trade auction, for example, is marking prices that are 40% below their 2014 peaks while butter is 29% lower.
