Butter prices still buoyant but have peaked for 2018
Butter prices have peaked for this year, but demand still remains strong.
That's the verdict from Aurivo CEO Aaron Forde who said prices have eased in the last couple of weeks, with the majority of Christmas stocks now ordered.
"We are now into a different era for butter prices," he said. "Butter has passed the peak for now."
Butter prices peaked at €6,900 in Europe this autumn but have fallen back to around €5,400.
"Consumption was going to be affected if it continued at those levels - there was some evidence of that in Germany," said Mr Forde. The Aurivo CEO, who is also chairman of Ornua, said GM-free butter was a segment of the marketplace but it does not appear to be attracting a premium over Kerrygold.
He said the possibility of producing GM-free products was "under active consideration by everyone in Dairy Ireland".
However, he said there does not appear to be a "strong premium" for it and the extra costs of imported organic feed would have to be balanced against a potential premium for GM-free products.
After launching Aurivo's third fixed milk price scheme, Mr Forde said Aurivo felt it was delivering a "strong" scheme for suppliers who choose to participate with a guaranteed 33.5c/l including VAT on up to 10pc of their monthly supply for 36 months.