EU milk prices are expected to decline by 0.2% in September; the lowest rate since February, the latest Milk Market Observatory (MMO) figures show.
The figures from the European Commission’s MMO, predict that the average EU milk price for September will be 29.51c/L.
It also estimates that the average Irish milk price for September to be 27.93c/L.
There is 7.52c/L difference between this latest prediction and milk prices paid to EU farmers in September 2014. On average, the MMO figures show that there has been a 20% drop in the milk price from July 2014 to August 2015.
Looking to Ireland, there has been a 23% drop in the raw milk price when August 2014 and August 2015 are compared.
The Netherlands has seen the greatest drop in prices with a decline of 28% from August last year to the corresponding period this year.
Irish milk production powers ahead as other EU countries fall back
Irish milk production this year is up some 8.4% compared to the same period in 2014, this compares to an EU average increase of 3.1% over the period.
The latest EU figures show Ireland way out in front in terms of milk production this year.
Meanwhile, other Member States such as France and Italy have seen lower production so far this year.
For the short-term outlook, the Milk Market Observatory (MMO) says cumulative EU milk deliveries in 2015 were estimated to increase by 1.1%.
Milk production increases continue in Ireland, Hungary, Netherlands, Spain, Poland and the UK, while downward trends are expected in France and Germany.
Production would continue to increase in 2016 but by no more than 0.9%.
For 2015, increased milk production would translate into 1.3% more cheese (and a stock increase by 30 000t), 7.5% more SMP (and +25 000t stocks) and 4% more butter (and + 5 000t stocks).