Dairy price boost was unexpected

EVERYONE was taken by surprise when the market for dairy products picked itself off the floor 12 months ago, Irish Dairy Board chairman Michael Cronin told those attending the Irish Examiner Farming Forum at the National Dairy Show in Millstreet, Co Cork.

Since then, prices doubled for butter and skim milk powder. He said it was just as hard to figure out the future for milk prospects. However, he saw opportunities continuing for Irish cheese exports to Britain. He said milk prices are low there because of the weakness of co-ops, and this was driving more and more farmers out of milk. With British milk production due to fall by up to 8% this year, and the huge liquid milk market the first priority, cheese imports would be needed.

Globally, there would be some negative impact on demand due to the high price of dairy products, but there was no sign of that yet.

“Butter can’t stay at the present level,” he warned, pointing out butter prices had been supported by refunds for half of the past year. Milk powder prices appeared to have passed their peak.