Arrabawn follows other co-ops with June milk price cut
Arrabawn dairy co-op is paying 28c/L for June milk, down 1.5c/L on the previous month.
The dairy processor is also confirming that milk volumes from its farmer members have increased by approximately 10% year-on –year.
Meanwhile, Tipperary Co-op has confirmed a June milk price of 27.66c/L, down 1.0c/L on the previous month
“Processing volumes have actually risen by 25%,” said Arrabawn chief executive Conor Ryan.
“But that’s because we have been helping out a number of neighbouring processes. On-farm milk production is still at extremely high levels, and shows no sign of falling back over the coming weeks.”
Ryan said that Fonterra’s GDT auction is doing farmers no favours at all at the present time.
“It is important to the extent that it sets the tone with international buyers. But the reality is that Europe is not adding to the volumes of milk coming onto the international market at the present time. Most of Europe is ravaged by drought.
“The initial indications are that yet more additional product will be submitted for the next GDT event. This is more a reflection of the dairy stocks that exist in New Zealand rather than the situation currently prevailing in Europe. We may well have to wait until September before international markets start to settle down. ”
Ryan said that Russia’s continuing EU food import ban is having a major impact on European dairy markets.
“Moscow’s decision means that 250,000t of additional dairy products are staying within the EU. And this is putting significant downward pressure on prices within Europe.”
But Ryan also points out that Irish farmgate milk prices would be a lot lower at the present time, were it not for the recent weakening of the Euro against other currencies, particularly the US Dollar.
“We export significant quantities of dairy products to the United States. And the continuing fall in the value of the Euro is helping to make our dairy export more competitive in that country.”