Top November milk prices not far off 40c per litre
He said GDT prices rose 0.5% for butter, and 2.3% for slim milk powder, which would translate to an Irish milk price equivalent of just over 36c/l before VAT.
Mr O’Leary said the latest available EU market prices for butter and skim just before Christmas would return an Irish milk price equivalent to just over 32c/l, before VAT.
He called on co-ops to increase prices for December milk, and into the spring.
Recent milk price increases left many farmers enjoying variable prices not far off 40c per litre in November.
In the market-leading west Cork co-ops, the average price paid for the month to Lisavaird suppliers, for example, was 37.37c/l, based on the average constituents of 4.59% butterfat and 3.78% protein. Fixed prices were 40.13c or 37.13c.
At Drinagh Co-op, for example, the average price paid for November milk was 38.53 cpl, based on the average butterfat of 4.65% and protein of 3.82%, including milk price support, SCC, SDAS bonuses and VAT.
However, dairy farmers’ fears that sales of the EU’s huge intervention stock of skimmed milk powder could depress 2017 milk prices have grown, after a poor response to the first tranche sale, when 22,000 tonnes was offered recently.
The quantities offered for sale represent about 6% of the 355,000t which went into public storage in 2015 and 2016.
Only 40 tonnes out of 22,000 tonnes was sold in the first accepted bids, at a minimum selling price of €215.10 for 100kg. This price is higher than the current EU average price for skimmed milk powder of €201.
Market analysts say selling at all costs was never an option for the Commission, and that the maintenance of market balance and price recovery remain its main objectives.
A second tender for the sale of the remaining quantity opened this week.
Officials have predicted it will take two years or more to sell the intervention powder, and its presence on the market could hold EU milk prices below 32c until 2018.
