Glanbia and Kerry hold October milk prices – country over quota by 7.15%
Both Kerry Group and Glanbia have held their milk prices for October, as the country is 7.15% over quota.
Kerry Group has held its October milk price, at 32c/L, while Glanbia has held its at 30.5c/L (both inc. VAT).
This comes as dairy farmers face a considerable superlevy, with the most recent update putting the country at 7.15% over quota, which is significantly above the 0.90% over quota position the country was in the time last year.
Industry estimates put falls of 8.5-9c/L in milk prices this year costing farmers in the region of €24,000, based on a 280,000L quota. Coupled with superlevy bills next year, this could put a lot of dairy farmers under pressure next year, according to industry sources.
IFA National Dairy Chairman Sean O’Leary who was part of an Irish Dairy Board delegation meeting with the Minister for Agriculture last week said that further EU Commission action on dairy crisis management is needed to mitigate the severe knock on effects of the Russian ban on EU dairy exports.
O’Leary said the Minister must work with his fellow Agriculture Council members and our new Irish Agriculture Commissioner Phil Hogan to re-open the cheese APS scheme, and extend it to a full year to match the announced duration of the Russian ban.
It comes as dairy farmers are advised to take a very conservative approach to their business plans for 2015, and to budget for lower than expected milk prices for much of the year, according to ICOS.
It says that as Ireland and Europe comes to the end of the 2014 supply year, the continuing deterioration in dairy markets shows no real sign of easing.