Commenting on today’s 3.1% uplift in the GDT auction index, IFA National Dairy Committee Chairman Sean O’Leary welcomed the recovery in powder prices. SMP prices lifted by a very significant 7.1% on average, while WMP – the auction’s most traded product – saw a 3.5% average price increase.
The GDT price for butter and SMP would return a gross 37.3c/l before processing costs of 5c/l, equivalent to a milk price of 32.3c/l + VAT, or 34c/l including VAT in Irish terms.
Mr O’Leary added that the most recent available EU average market prices quoted by the Milk Market Observatory for 9th April show a stabilisation in EU SMP prices at around €100/t above intervention, a slight easing of WMP and Cheddar prices, while butter and whey powder prices have lifted consistently for the last couple of weeks.
“Assuming an Irish product mix, these prices would return a gross 36c/l, or a milk price equivalent of 31c/l + VAT (32.7c/l incl VAT) after 5c/l processing costs are deducted,” Sean O’Leary concluded.