Butter prices slip lower yet again

THE expected slide in butter prices continued last week with the Irish Dairy Board announcing a second reduction in its price, of €37 per tonne.

Butter price weakness is due to the EU closing off intervention on May 30, after a 50,000 tonne buying-in limit was reached. Brussels is expected to continue a tender system to avoid a price collapse, but is expected to use tendering to force the support price down, in line with the July 1 €206 per tonne third phase of dairy price cuts which were agreed in 2003.