Irish milk prices among highest
Milcobel in Belgium was the only company in eight EU countries to pay more for milk in June than Glanbia or Kerry, in the international milk price review compiled by the Dutch Dairy Board (Productschap Zuivel), in cooperation with the European Dairy Farmers organisation.
Glanbia paid €32.34 and Kerry €31.83 for 100 kg of milk, compared to an average €27.98. The VAT excluded price is calculated for milk at 4.2% fat, 3.4% protein, 500,000 kg per year, TBC 24,999 and SCC 249,999, collected every other day.
The fast rising Irish milk prices have reached their highest point since 1999 in the Dutch Dairy Board review, which the compilers attribute to the Irish dairy industry’s high dependence on bulk commodities like butter and milk powder, for which there have been tremendous price rises. Milcobel’s price was attributed to taking full advantage of strong price rises for milk powder.
Due to increasing demand and a lack of supplies, the market for milk protein is out of balance, and the butter market also shows signs of over-heating, according to the review.
Prices of milk powder are thought to be stabilising on the EU and world markets, but butter prices have started to rise rapidly. A movement out of cheese manufacture into milk powder has the potential to trigger a gradual cheese price rise. Farmers in the US and New Zealand are generally gaining more from buoyant world dairy markets recording an “astonishing” 75% annual price rise in the US to €36.66 per 100kg, a new record. In New Zealand, the Fonterra payout forecast has gone to €23.72.
