IFA National Dairy Committee Chairman Sean O’Leary said the announcement this week of a 4.5 points increase in the February IDB PPI to 97.5 points meant that the returns now available to Irish co-ops had come back into line with current milk prices of around 30c/l incl. VAT. He added that market prices reported for March to-date had continued on the same positive trend, which argues well for future increases.
He said that this was further evidence of markets coming back into balance, confirming the trends established in recent GDT auctions and in EU average market price reports.
“Average market prices reported by EU Member States up to the end of last week have continued firming, especially for butter and WMP. Average prices reported for Irish butter and SMP are also well up on those indicated for the last week of February, at €3040/t for butter and €2130/t for SMP. The gross returns for an Irish product mix at EU average prices now exceeds 35c/l before processing costs, which also indicates that markets have come back up to meet current milk prices,” he said.
“Friesland Campina have increased their milk price twice this spring, with their March price now at €34/100kgs for milk at 3.47% protein and 4.41% fat, and 4.51% lactose,” he said.
“Irish farmers will welcome these signals of market improvements and look forward to milk prices being at least held for the short term,” he concluded.