Co-ops 'to hold milk prices'
Responding to the Rabobank report, the IFA's dairy chairman, Kevin Kiersey, said that the forecast of solid annual growth of 2.5pc per annum, compared to 1.6pc last year, would allow co-ops here to hold milk prices for the next few months.
"I believe farmers are well justified in expecting that co-ops would hold milk prices at least for the spring," he said.
"If the strong demand trends flagged by Rabobank come to pass, dairy commodity prices may not weaken further, and could even strengthen again before the year is out. To be fair to farmers, co-ops cannot prejudge milk prices too early, and must give themselves some time before taking a longer view for the year."
However, the most recent results from Fonterra's dairy auction showed decreases in all of the main dairy commodities to bring the overall dairy price index down by almost 1pc. The biggest drops were seen in the price of milk protein concentrate and casein, which were down 4.9pc and 4.3pc respectively.