Kerry CEO raises doubts on sustainability of milk prices
The current price being paid for milk is not supported by the actual demand in the marketplace, according to the Kerry Group CEO.
His comments come after most of the country's processors held their milk price for January, however, the global dairy trade auction saw prices drop back slightly.
Kerry Group CEO Edmond Scanlon said stability in milk price was very important for the company and it follows a strong year for dairy prices.
"Anything we can do to get volatility out of our commodities, including dairy, is a positive thing," he said.
"It's fair to say the current milk price as it stands is not supported by the actual demand in the marketplace."
Mr Scanlon said the strong performance in dairy has driven on volumes.
"It's been driving a huge amount of increase in supply, especially in some of the major European manufacturing and exporting countries, so we would certainly have some concerns about that," he said.
"There's no doubt that dairy demand is soft right now. It's too early in the year to predict what the milk price is going to look like, but from our standpoint, we want to see stability."