FIRST EU MMO DAIRY PRICE REPORT OF 2017 AUGURS WELL FOR FURTHER MILK PRICE INCREASES – O’LEARY
Today’s first publication for 2017 of the EU Milk Market Observatory’s report on the average EU dairy commodity prices suggests that the upward price trend is continuing into the New Year. This, IFA National Dairy Chairman Sean O’Leary said, augurs well for December milk price increases for Irish dairy farmers, and for milk prices into the New Year.
“Today’s EU MMO report shows good increases in butter, SMP and whey powder prices in the last two weeks. There is some easing of WMP and Cheddar prices, but the overall returns continue the ongoing upward trend we have been seeing in recent months,” Mr O’Leary said.
“Assuming a representative Irish product mix, the prices reported for the week ending 1st January suggest gross returns of just under 38c/l, and therefore equivalent to a farm gate price of 32 to 33c/l + VAT,” he added.
“A growing number of contracts signed by Irish co-ops will be for products priced nearer those higher levels, and this will undoubtedly improve the ability and confidence of co-ops to pay further milk price increases, not only on December milk, but also in the coming months,” Sean O’Leary concluded.