Farm leaders welcome Kerry view
IFA Dairy Committee chairman Michael Murphy said Mr Friel’s statement confirmed his analysis of current dairy markets. There were absolutely no reasons to talk down milk prices. There might even be scope for price rises before the end of the year.
“I have said many times in the last few months that milk price decisions should be made based on markets, which are buoyant, and not on CAP reform decisions, which may not have a major impact on market returns for this year,” he said.
Reductions in EU export refunds have been compensated by price rises. In the EU, those buyers who had waited in expectation of lower prices will soon have to start purchasing product.
All signs are that, if anything, prices for some of the commodities might increase in the second half of the year. As a possible shortage of butter in the EU is also expected due to milk being directed towards cheese and other products, there may even be scope for a milk price rise before the year end.
ICMSA dairy committee chairman Dominic Cronin said the optimism by Hugh Friel regarding the milk price prospects for the period ahead is welcome news for dairy farmers, not only in Kerry Group but countrywide.
Given market developments, ICMSA is now saying to co-ops that the price of milk should at the very least be maintained for the rest of this year. With the strengthening market situation, an improved milk price is now a real prospect for dairy farmers.
