Glanbia tops milk buyers’ price league
It paid 48.3c per litre, according to the Dutch Dairy Board rankings of 17 milk buyers across the EU, VAT excluded and standardised at relatively high milk solids, by Irish standards — 4.2% fat and 3.4% protein — for delivery of 500,000kg per year, TBC 24,999 and SCC 249,999, collected every other day.
Kerry Group was ranked seventh, at just short of 40c, but behind the average price of 40.4c (which had increased 33.8% in 12 months).
Sodiaal in France paid the lowest price of the 17, at 35.8c.
Equivalent price levels are at in 28.1c in New Zealand and 33c in the US, according to the Dutch Dairy Board, which produces the data in cooperation with the European Dairy Farmers Association.
It looks like the surge in milk prices will gradually weaken and may come to an end after recent price pressures are building for basic dairy commodities, said the compilers of the rankings.
EU dairy product prices had already turned around from their peak levels, and were going down fast as the market for basic dairy commodities went into price correction mode.
Persistent price pressures for milk powder had led to quotations much lower than their record highs in August, and a rapidly weakening butter market had seen prices going down almost 15% from their record highs in the third quarter.
The cheese price trend was stable.
But it was pointed out that lower prices and a more favourable exchange rate against the US dollar could generate renewed international buyer interest in EU dairy products, against the background of a still strong world dairy market. But global markets would become more price sensitive as soon as extra supplies became available.
Strong US exports of $295.7m during the first nine months of 2007 were noted, boosted by the lower conversion value against the major currencies.
US milk production in November was 3.8% ahead of November 2006, due to cow numbers growing 0.7%, and 2.5% higher production per cow.
However, high feed costs may cause more cows to be culled over the winter and, together with high prices for dairy cow replacements, may dampen increases in 2008 milk production.
New Zealand milk from July to September was not as strong as anticipated, resulting in reduced export volumes. Drought continues to hit Australian dairy production and exports.
