Gdt May Be Bottoming Out, but Eu Action on Russian Ban Remains Vital

IFA National Dairy Committee Chairman Sean O’Leary said an unchanged average price and firrner powder and casein prices at this week’s GDT auction were signs that global markets may be bottoming out, which was to be welcomed.

However, he said that the GDT auction was an indicator of global market sentiment. Meanwhile in Europe, the dairy sector and dairy farmers were still taking the brunt of the Russian ban and falling prices. “More decisive EU Commission action is required to help the sector face the consequences of geopolitical developments they cannot be expected to pay for,” Mr O’Leary said.

“EU market measures taken thus far were positive, but insufficient. It is vital that Minister for Agriculture Simon Coveney would obtain an extension to 12 months of the APS scheme, the revaluation of the “safety net” intervention price levels to match production costs, and the provision of targeted export refunds to help exporters find alternative markets. Such measures would be sure to communicate strongly to buyers that product will not be getting any cheaper,” he said.

“Meanwhile, I am urging co-ops to be judicious on milk prices in coming months: it is crucial for the future of the Irish dairy sector that farmers would start the spring, and the post quota era, with viable milk prices,” Mr O’Leary concluded.