Dairy markets 'delicately balanced' says Glanbia as it holds March milk price
Glanbia will pay its milk suppliers 31 cent per litre (cpl) including VAT for March manufacturing milk supplies.
Glanbia Ingredients Ireland (GII) has held its base price for March at 31 cpl including VAT for manufacturing milk at 3.6% fat and 3.3% protein.
Glanbia Chairman Henry Corbally said that the Board will continue to monitor dairy markets on a monthly basis.
“Milk supply from the USA remains strong, while European milk volumes are recovering faster than expected. There continue to be a number of geopolitical uncertainties that could impact on the global dairy market.
"Supply and demand remain delicately balanced based on current global supply indications,” he said.
Corbally's comments are in contrast to those of Rabobank dairy analyst Kevin Bellamy who says some 20pc growth in Chinese imports is expected to keep global dairy markets "well balanced" over the next three months.
However, the bank's quarterly review of the global dairy sector warned that higher than expected production in New Zealand at the end of their production season had "applied the brakes" to the 2016 price recovery.
The analysis also cited the continuing divergence between butter fat and protein prices as a serious drag on dairy markets.