Milk prices fell more in Ireland than any other EU country in January when compared to the same month last year, according to latest data from the EU Milk Market Observatory (MMO).
Its data shows that EU milk prices fell on average by 2.8% in January as dairy markets continue spiral downwards in the face of increased production and sluggish demand for dairy products globally.
Irish milk prices showed the greatest decline over the period. The MMO data says Irish prices fell by 12% to 29.28c/kg from 33.50c/L in January 2015.
Other countries that have seen significant falls include the Czech Republic, Slovakia, Portugal, and Bulgaria.
EU milk collection increased by 5.5% in November 2015 compared to the same month last year. Total milk deliveries in the first 11 months of 2015 have been 2.2% higher than in the same period in 2014. In the 11 months, SMP production rose by 8.6% while butter production was up 4.3%.
Meanwhile, the Ornua Purchase Price Index (PPI) the monthly indicator of market returns on dairy products sold by Ornua continued its downward trend in February falling slightly to stand at 85.4.
The January Ornua PPI had dropped to 85.7, which is suggestive of a milk return of around 25-26c/L.
It’s a record low for the Index, which had been in place since early 2011, and the current value suggests a milk price of around 7c/litre below the average for the 5 year period.
The February return is down some 13% on the same month last year and a massive 36% on returns posted in February 2014.
The Ornua Purchase Price Index (PPI) is a monthly indicator of market returns on dairy products sold by Ornua (typically butter, cheese, whole milk powder and protein products), relative to comparable returns generated in a base year (2010).