Dairies deliver optimistic call on spring milk returns
Published 14/12/2010 | 05:00
Senior Irish dairy sector officials have forecast a stable milk price from the start of next year, with most predicting that returns to farmers will hold at a base of 28-30c/l.
Positive developments on both the supply front and currency exchange rates have left processors far more upbeat about the prospects for dairy markets through the first quarter of the New Year.
However, there was general agreement that markets remained volatile, and none of those contacted by the Farming Independent were willing to speculate on milk price beyond March.
"In this economic climate visibility is limited. You can look four months ahead at most," said Kerry Group's Frank Hayes.
However, he said the omens for the market were positive and he admitted to being "optimistic" for the first quarter of next year.
"Markets have remained stable. There was a dip in butter price but buying looks stable and people are optimistic, we're optimistic," Mr Hayes added.
The Kerry Group spokesman said the fundamentals of the market looked good and there was no evidence of any "strong negative sentiment" among buyers.
He said fears of a sharp lift in supplies out of North America had been undermined by the higher cost of cereals.