Why the ICMSA believes co-ops 'can and must' hold price into the summer
Following the publication of the January 2018 Ornua PPI and the series of January milk price announcements, the Chairperson of ICMSA’s Dairy Committee said that the stability of the index at 111.3 shows the improved resilience in dairy markets and demonstrates again ICMSA’s belief that milk price “can and must” be held current levels.
Ger Quain said that all three GDT Auctions in 2018 have been positive while Dutch dairy quotations firmed notably in recent weeks:
“The 5.9pc increase in the most recent GDT auction was achieved by increases in all products sold with butter, SMP and WMP achieving over 7pc gains.
He also said European quotes for butter are holding strong and remain at a historically high level in the mid €4,000 per tonne range.
"Dutch quotations for the butter/SMP mix have rallied in the last four weeks while WMP price has increased by over 2cpl since the start of the year and has regained some of the ground lost in the run-up Christmas.
"Demand for dairy products is positive across Europe and globally and we still see the traditional link between strengthening oil prices and demand for dairy.
"Processors and Co-ops can - and must - hold milk price into Q2 and towards our peak production”, said Mr. Quain.
Meanwhile, the boss of LacPatrick Dairies remains optimistic on the prospects for milk prices this year, saying he doesn’t expect a repeat of the collapse in prices seen two years ago.