IFA National Dairy Committee Chairman Tom Phelan said the whopping 8.3% increase in today’s GDT auction result is the clearest indicator yet than markets are recovering as global markets reopen and food services demand recovers post lockdown.
Mr Phelan said he believed this should give co-ops confidence to increase June milk prices by at least 1c/l.
“Whole milk powder prices are up a whopping 14%, with butter up 3.0%, SMP 3.5% and Cheddar cheese 3.3%. This is a strong vote of confidence by traders in the global dairy demand for the next five to six months,” he said.
“After several weeks of steady European spot and average market price increases for the main commodities, I believe this is the most decisive indicator yet to show that confidence and demand are returning to dairy markets,” he said.
“Co-ops will be deciding their milk price for June milk within a week or 10 days. This extremely positive GDT result must encourage them to return at least an additional 1c/l to their suppliers,” he concluded.