Profitable 2014 predicted for top Irish milk producers

A profitable 2014 is predicted by Rabobank for milk producers around the world, at least for the first half of the year, and particularly for intensive feeding producers.

“2014 will be an intriguing period for the global dairy market,” said analyst Tim Hunt. “We expect prices to hold around current highs before easing from mid to late 2014 with continuing supply growth in response to significantly improved margins. Any subsequent reduction in pricing will be limited by structural constraints on suppliers, the need to replenish depleted inventories and ongoing demand growth in line with a slow economic recovery,”

Globally, farmgate milk prices are at record or near record highs in many regions. Many Irish co-ops expect their average price for the year to be the highest ever.