24 Jan 2012
WEAK EURO A MAJOR BOOST TO DAIRY EXPORTS – KIERSEYDairy
IFA National Dairy Committee Chairman Kevin Kiersey today (Tues) said that, since last April, the euro had weakened by over 11% against the US $, and by 6% against Sterling. He said this was equivalent to a return boost of 4c/l on SMP and butter exported onto the world market, and just over 2c/l for exporters of cheddar cheese to the UK.
“There is no denying that market returns have been easing from the 2011 peak. However, at least some of this has been made up by the advantage for our exports from a weaker euro,” Kevin Kiersey said.
“Co-ops must not prejudge at this very early stage what the 2012 outturn will be for dairy markets. We clearly have a strong export advantage at the moment which is likely to persist well into 2012, at a time when supplies from the southern hemisphere are petering out,” he added.
“Co-ops are well placed, with strongly improved profits and low supplies linked to superlevy concerns, to hold milk prices for the spring at the very least,” he concluded.