Euro­pean milk prices ‘turn the cor­ner’

Irish Examiner - Farming - - FRONT PAGE - Stephen Cado­gan

Euro­pean milk prices have turned the cor­ner, with the first monthly in­crease since last Novem­ber seen for June milk, in the mon­i­tor­ing by the Dutch LTO farmer or­gan­i­sa­tion of prices paid to farm­ers by 17 milk pro­ces­sors.

And many EU co-ops have al­ready an­nounced ris­ing prices into Septem­ber, de­spite but­ter and skimmed milk pow­der price quo­ta­tions be­ing un­der pres­sure since June, in a very quiet mar­ket with lit­tle buy­ing in­ter­est, and in­ter­ven­tion pow­der re­leases hav­ing pushed the mar­ket down fur­ther.

Here, ICMSA Dairy Chair­man Ger­ald Quain said this week that pay­ment at the Or­nua PPI level of 32.8 cents per litre is ab­so­lutely es­sen­tial for July milk, given the pres­sures on dairy farm­ers and the ex­pected sub­stan­tial re­duc­tion in their in­come.

IFA Dairy Chair­man Tom Phe­lan said the un­changed June milk price at many co-ops was dis­ap­point­ing, and he called on co-ops to re­flect the av­er­age EU re­turn for July, at about 32c/l plus VAT. He wel­comed co-ops as Glan­bia, Dairy­gold and Kerry’s de­ferred and/or in­ter­est free credit for feed and fer­tiliser purchases, and Dairy­gold and Kerry’s re­bates for purchases. But the high­est milk price is al­ways the best sup­port for farm­ers, he said Dairy Crest in the UK, the low­est pay­ing of the 17 milk pro­ces­sors mon­i­tored by LTO, has an­nounced price in­creases for three months to­tal­ing about €3.30 per 100 kg. This in­cludes a sup­ple­men­tary pay­ment of 0.5p per litre from Septem­ber for farm­ers due to the ex­treme weather con­di­tions. Arla and Fries­landCamp­ina have an­nounced milk prices for July and Au­gust.

Arla adds on a to­tal of €2.80 per 100 kg, Fries­landCamp­ina adds €1.50 in July and holds the price in Au­gust (guar­an­teed price for Au­gust 2018 €35.75 per 100 ki­los of milk). DMK adds on €1 per 100 kg in July. Saven­cia in France will pay €2.40 more in July and will hold the price in Au­gust. Lac­talis in France will pay a to­tal of €2.30 per 100 kg ex­tra in July and Septem­ber.

The June in­creases rel­e­gated the three Irish co-ops which are mon­isuch tored to sub-av­er­age prices. Com­pared to the av­er­age of €32.53 per 100kg, the price was €32.30 at Dairy­gold, €32.09 at Glan­bia, and €32.43 at Kerry Agribusi­ness. Com­pared to the 12-month rolling av­er­age of €34.91, the price was €34.49 at Dairy­gold, €33.88 at Glan­bia, and €34.45 at Kerry Agribusi­ness. An un­changed over­all av­er­age in­dex in Tues­day’s GDT auc­tion points to steady global mar­kets, how­ever the prod­ucts of most in­ter­est to the EU, but­ter and skim milk pow­der were 3.2% and 0.3% cheaper, re­spec­tively.

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