Dairy Market Prices Continue to Lift Strongly

IFA National Dairy Committee Chairman Kevin Kiersey said the recent European quotes for dairy commodities showed that the recovery in dairy prices was continuing strongly. Dairy prices had reached their lowest ebb in mid to late May, and most commodities’ prices had lifted by around €200/tonne since then. Mr Kiersey said the continued increase in dairy product prices should give co-ops the confidence to call an immediate halt to milk price cuts.
He said, “There is something of a lull in dairy supplies at the moment: everywhere the strong growth relative to last year is losing steam, Oceania is at the low ebb of its production season, while the EU and the US are well past peak. Buyers have reacted to this by coming back to the market, and this has resulted in a lift in prices.”
“Dutch official quotes for butter on 20th June reached €2650/t, an increase of €200/t since late May. German butter quotes were up €220/t over the same period, while French butter quotes were €180/t up,” Mr Kiersey said.

“Milk powders are also benefiting from the recovery: Dutch quotes for SMP were up €190/t since the end of last month, while German and French prices were up €225/t and €200/t respectively. Whole milk powder prices have lifted slightly more modestly at €100/t (NL), €155/t (D) and €140/t (F),” he added.

“Spectacular price increases of around €160/t (22%) have been seen on EU whey powder since the end of May, with whey now a product very much in demand internationally for high value sports, children or medical nutritional products,” he said.

“EU SMP/butter returns have improved by an average of 2.7c/l over the admittedly low level of the end of May. As market returns come to meet the milk price, this continuing trend should encourage co-ops to announce immediately an end to milk price cuts,” he concluded.