Milk price slump set to continue for six months
Prices now 24pc down on last year and analysts predict further falls
The downward spiral of milk prices has accelerated in the last week, and a key dairy analyst has warned there is little sign of improvement in the next six months.
The Global Dairy Trade (GDT) auction took a massive 11pc tumble, followed by cuts of up to 1.5c/l by Irish processors for key June milk deliveries.
The average price of 28c/l is over 24pc lower than the June 2014 price, but is still considerably less than the falls being experienced on international markets.
There appears to be little prospect of price improvement on the horizon in the next six months.
"We just have to wait for something to happen to change sentiment - until it happens, nobody knows what that is going to be," said Teagasc's head of dairy research, Padraig French.
"But we still don't know when prices are going to pick up again, so you could be looking at a similar price for all of next year," he admitted.
Dairy industry analyst, Barry Wilson was even more pessimistic.
"I don't see any light at the end of the tunnel. The Chinese economy is still tanking, the Russians are happier than ever [with the ongoing ban on EU food imports], and there's no way that the EU is going to increase intervention prices," he said, with the current intervention price at 21c/l.