Saturday 04 August 2012
Glanbia has confirmed their intention to hold the current milk price for July, a move welcomed by IFA president John Bryan, who said it must now be followed by other processors.
Exchange rates have also boosted the attractiveness of Irish dairy products relative to sterling and dollar competitors. Northern Ireland's milk auction today (Thursday) is forecast to be around 24p/litre (30c/litre).
Meanwhile, dairy industry sources are talking in more upbeat terms about market prospects, with some now predicting a price rise around the turn of the year.
This is due to likely feed price impacts on milk supply growth and weather related shocks in a number of regions, including the US (drought), Europe (cold and wet) and India (late monsoon rains).
US milk output in June was up about 1% on prior year levels, a sharp fall from the 4% rate of growth seen in the early part of the year.
Supply constraints should allow stocks to be reduced, provided that demand growth is maintained.
However, the weak global economy means that this is far from certain.
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