Today’s Global Dairy Trade (GDT) event in New Zealand concluded with the price index increasing by 1.7%.
IFA Dairy Committee Chairman Sean O’Leary welcomed the bounce back in prices paid at the auction. “But we can’t read too much into one event,” he said. “One disappointing aspect of the GDT result is the continuing decline in SMP prices.
The key results are as follows:
- AMF index up 3.0%: average price US $5,799/MT
- Butter index up 4.9%: average price US $4,910/MT
- BMP index not available: average price not available
- Ched index down 1.0%: average price US $3,406/MT
- LAC index down 2.7%: average price US $913/MT
- RenCas index up 3.6%: average price US $5,927/MT
- SMP index down 10.1%: average price US $1,948/MT
- WMP index up 2.9%: average price US $2,855/MT
He added: “Of more specific interest to Irish dairy farmers is the monthly Purchase Price Index from Ornua. It is currently pointing towards a farm-gate milk price in Ireland of around 33c/L. This is in line with the projections made by Ornua Chief Executive Kevin Lane last autumn.
ICMSA President John Comer also expressed a degree of concern regarding the further fall in SMP prices at the latest GDT event.
This result can be partly attributed to the large SMP stocks that currently overhang the markets. But the overall result reflects the general stability that now exists on world dairy markets.
Comer stressed the need for Brussels to retain the use of a voluntary production reduction measure, as a mainstream support mechanism for the dairy industry.
“Surely it is better for farmers not to produce milk, rather than have it processed into low-value products, such as SMP.
“We stressed this point directly to Commissioner Phil Hogan at a meeting held in Brussels yesterday.
“Such a scheme must be voluntary in nature, but implemented on an EU-wide basis. Funding options for an initiative of this kind must be thoroughly researched by the European Commission.”