ICMSA wants 4c milk rise despite subsidy threat
A European Commission spokesperson said they was reacting to rapidly rising world market prices and the reduction of the difference between internal support prices and world prices.
The export subsidies move is seen as an important signal from Brussels, which could limit upward milk price movement, in conjunction with the ample stocks in intervention.
Market analysts are also questioning if there is an upturn in dairy markets, or if buyers are temporarily re-building inventories which were run down due to recession fears.
There are no signs yet of the structural increase in demand needed for a more durable market recovery, according to the Dutch Federation of Agriculture and Horticulture.
However, they also point out that Irish milk processors were slow to respond to higher prices for butter and skimmed milk powder, in contrast to 2007, when Irish milk prices were among the first to rise.
Meanwhile, Kerry Group has increased its milk price for October by 2c per litre, and has retrospectively increased milk prices by 1c litre for September. The Glanbia plc board has added 2c to their September milk price, to match the Irish Dairy Board increase.
