Ornua has announced the PPI for November which demonstrates impressive gains in milk price since October. At 131.9, the milk price equivalent is 40.3cpl. This rises to 44.31cpl when adjusted to include the Ornua Value Payment.
Commenting on this gain, IFA Dairy Chairman Stephen Arthur said that milk processors must pay a milk price in excess of 40cpl for November milk. “The global market is very positive at the moment and our industry is very well positioned to take advantage of this,” he said.
International dairy markets continue to perform strongly with the New Zealand GDT index up 14% in the past three months.
Despite rises in global commodity prices, global supply remains sluggish. US milk production has slipped back 0.5% in October due to a reduction in cow numbers; NZ milk production is back 3.3% and European supplies remain steady.
“Typically, as milk price rises, global supply increases, but this year we are seeing supply remain steady. This has translated into really strong prospects for milk price for 2022,” he said.
“Our milk processors must command strong product prices in this buoyant global market and deliver a milk price above 40c/L for the rest of the year,” he concluded.