Expect more milk price pressure, warns ICOS

European milk prices are expected to come under significant downward pressure in order to reflect the current market returns, warned market analysts at ICOS this week.

They said milk supplies, internationally, are expected to show growth on last year, despite the poor start to the 2015 season.

On the demand side, low product prices had prompted some demand growth, which will help to absorb production growth. But current butter and skim milk powder quotes from the Eurex exchange would appear to support milk prices of only 24c per litre including VAT, according to ICOS.