Exceptional milk prices may be sufficient to maintain dairy profit margins
Dairy markets are expected to stay strong because unfavourable weather in New Zealand and South America points to lower global milk production growth in 2022.
With Irish farmgate milk prices now among the highest in the EU, dairy farmers here have benefited from weekly EU wholesale prices continuing to rise through March and the first half of April. It comes despite prices on the New Zealand-based GDT trading platform easing slightly since March 1.
Irish milk prices in 2022 could be 20% to 30% higher than in 2021, on average, says Teagasc. However, some farmers have significant shares of their output in fixed milk prices contracts, well below the prevailing spot milk prices, and they will be hit by falling income.
