Improvements in demand, and the fear of shortfalls, had prompted many milk purchasers to raise their milk prices. Since July, this has been reflected in a 5.3% rise in the EU monthly average, to a September level of €26.99/100kgs, an increase of 2.3% on the previous month.
Dutch spot milk prices, which have been rising rapidly since May, have now stabilised at EUR42.00 per 100 kg. Italian prices continue to climb, reaching EUR40.5 on Oct 16.
The main Irish milk purchasers are paying 24.7c/l + VAT for September milk. That’s 26c/l including VAT. There is clear scope for further milk price increases into October – the first month in which farmers are being paid to reduce milk production – which Irish co-ops must pass back to boost farmers’ cash flow.
CL/IFA/28th October 2016