Dairy commodity price falls bottom out, say Dutch Dairy Board
As firming dairy markets were reflected in Irish Dairy Board price increases, the Dutch Dairy Board said lower prices and a more favourable exchange rate of the US dollar versus the euro could generate renewed international buyer interest. But US export growth could be a very important factor in 2008 world prices. Meanwhile, availability of dairy products from Australia and New Zealand would be limited over the coming months, with milk production down 27% in Waikato, one of the main New Zealand milk areas, after their driest January since 1906.
The Irish Dairy Board has added €200 per tonne for unsalted butter and €50 for skim milk powder, effective from February 8.
Dutch Dairy Board rankings of 17 co-ops and dairies across the EU show the average milk price (paid in advance) increased 14.2% across Europe 2007. Glanbia and Kerry paid the biggest 2007 increase, followed by Milcobel of Belgium. — because these companies produce more of the basic commodities for which there has been an unprecedented price rise. Most of the 17 companies lowered prices in December — but not Glanbia or Kerry. A winter milk allowance of 8.6c per litre kept Glanbia at the top of the rankings.
