Weather watch as global dairy prices rise
Already, there was a 10.4% dairy price surge in this week’s global auction conducted by Fonterra, the New Zealand co-op which dominates dairy exports.
Some New Zealand industry analysts say drought conditions could drive world dairy prices up to the record March 2011 levels, after the Government expanded its official drought classification of areas.
Here, ICMSA anticipated a major boost to milk price after the global dairy trade auction increase.
Dairy committee chairman Pat McCormack, said it was exactly the news that dairy farmers needed to hear.
“Of particular interest to Irish dairy farmers in the latest auction is the fact that the butter index increased by 9.6%, cheddar by 8.3%, skim milk powder by 4.6% and whole milk powder by 18%.
“These are all products of huge importance to Irish dairy farmers, and it should be noted that this latest increase in the overall index is the sixth increase in a row.”
“ICMSA demands that February milk price is increased fully to reflect accurately the figures being fetched on international markets right now”, said Mr McCormack.
Whole milk powder prices broke through the US$4,000 per tonne barrier for the first time since March 2011 in Fonterra’s auction.
Sources at Fonterra said they had a “strong start” to 2012-13, with milk collection volumes 6% higher than a year previously. They forecast dry conditions reducing milk volumes to finish about 1% ahead for the full season.
With conditions too dry for grass growth in many parts of New Zealand, double-digit milk production declines are expected in North Island, although South Island is still producing strongly. Farmers badly need rainfall during March and April to help prepare for their winter and set up for next spring.
