Milk prices held despite market slump
The auction price was worse than had been indicated by futures trading, and very weak European dairy markets (suggestive of a current milk value of only 21-22c per litre, according to ICOS) leave dairy farmers as apprehensive as ever about prices in the spring, when Irish production volumes pick up.
The Ornua Purchase price Index has dropped to 88.2 for November.
Since July, the five-year-old index has been at record low levels.
However, the two biggest milk buyers, Glanbia and Lakeland Dairies, have held their base milk prices unchanged for November.
Carbery Group had earlier announced an unchanged November milk price.
Weak milk powder markets are dragging down the EU market, linked to developing nations which include some of the major customers for powders being unable to fund their purchases due to effect of ongoing low oil prices on their oil revenues.
ICMSA dairy spokesman Pat McCormack warned that 2016 milk price recovery could be delayed by an overhang of product which would normally have normally gone through the GDT auction system.
He said more than 1m tons of products were sold on the GDT in 2014, compared to just under 720,000 tons in 2015, leaving a sizeable gap between what was being produced and what was being traded.
Meanwhile, protesting dairy farmers across Europe have been sending fresh milk to EU Commission President Juncker, and calling for EU Agriculture Commissioner Phil Hogan to be removed from office.
In Germany, farmers on 140 tractors created traffic chaos when Chancellor Angela Merkel visited East Frisia, and Spanish farmers blockaded supermarkets in Coruña with hundreds of tractors.
