- Policy proposals for approval by National Council
- Market Report (if relevant)
In a short period of time the global dairy market has rebounded from the downturn experienced during the summer which has resulted in the stabilisation of farm gate milk prices from the majority of milk processors for September. While the PPI for October has not been published yet a marginal increase in value is expected. After 4 consecutive positive results from the GDT, SMP is trading at €2523/tonne, Cheddar at €3661/tonne and Butter at €4688/tonne in the Oceania region. European quotes are somewhat similar with recent spot prices (3rd Nov) valued at €4888/tonne of butter, €2570/tonne of SMP and €3580/tonne of cheese.
The rebound in market prices is attributed to weaker supply than expected from NZ and France, a predicted flat supply in 2024, and a traditional bounce in buyer demand in the run up to Christmas.
September Farm Gate prices at 3.3% protein and 3.6% fat.
|Processor||PROTEIN €/kg||c/L protein value||FAT €/kg||c/L fat value||VOLUME CHARGE||A+B-C||Bonus||VAT excl.||VAT||VAT incl.|
- Activity since last National Council
Milk Price Negotiations
Milk Price Negotiations for this winter are ongoings with producer groups seeking additional premiums. To cover the rise in input costs the committee has outlined that an additional 10cpl premium is required per month over 6 months to make the system viable. Concern is expressed over the volume of supply over winter going forward as liquid milk producers are particularly vulnerable to the recent changes in nitrates policy. It is estimated that just 270 suppliers supply over 50% of the contracted supply over winter months.
Producer Organisation Legislation
In July 2023 SI 396/2023 was published. This legislation provides for the establishment of producer organisations and for the first time ever provides a legislative framework for the establishment of producer organisations for milk and milk products. In an environment where farmer margins are constantly being eroded by declining food prices, this legislation could be used by farmers to fight for better prices. For the liquid milk sector, the potential exists to leverage such legislation against the dominance of private label milk which has put downward pressure on milk price for the past 15 years.
- Any EU/COPA developments
- Upcoming issues
- Interim review of the NAP due to commence shortly.