ICMSA confident milk price will hold
Dairy Committee chairman Dominic Cronin made the prediction following a meeting with European Commission officials responsible for milk price.
He said the Commission dairy experts had a positive outlook for world dairy product prices, which, in turn, have a direct influence on internal EU dairy prices.
Mr Cronin said the Commission officials are projecting a reduction in New Zealand milk production, which should help world prices. They also believe last year’s favourable market conditions can continue.
Last week’s announcement by Dairygold Co-op of a milk price increase is a further clear indication of positive developments.
“Taking all these factors into account, the outlook for the dairy sector is quite healthy. ICMSA remains convinced that strong milk price is a key factor in the overall health of our dairy industry” Mr Cronin said.
He said board members, must maintain a commitment to holding the price and resist any tendency to become overly pessimistic.
“Negative speculation can become self-fulfilling and ICMSA will always focus on the real strengths of the Irish dairy industry“, he said.
Minister Mary Coughlan, meanwhile, told the Oireachtas Committee on Agriculture and Food that the dairy sector outlook for 2005 is that the buoyancy of the markets will continue. She said that while it is difficult to forecast with certainty, many observers are predicting continued growth well into 2005.
