The double-digit increase in the Global Dairy Trade (GDT) index earlier today (Tuesday, March 2) “puts the case for a farmer milk price increase beyond doubt”, according to the Irish Creamery Milk Suppliers’ Association (ICMSA).
Speaking following the 15% increase in the GDT, ICMSA Dairy Committee chairman Ger Quain said that it placed the recent steady increases recorded “in the shade”.
It “makes overwhelming the case for a farmer price increase” for February milk, he added.
“Dairy markets are performing well at present and – as ICMSA already predicted – this will manifest itself in a higher milk price for farmer-suppliers,” the chairman said.
“The strong increases of butter by over 13% and WMP [whole milk powder] by 21% shows where demand in the dairy products is coming from in this latest GDT.
“This latest data means that 11 out of the last 12 results have seen positive GDT returns going back to last September.
The other point to note is that, while the results are much higher than expected in percentage terms, they are by no means an outlier or ‘out of sync’ in terms of the trend or direction of milk price.
“This latest round of results puts the case for farmer price increases next month absolutely beyond a doubt and makes them very likely for the months after that too,” Quain concluded.