Milk prices to fall due to significant rise in output: IDB
Milk prices will fall during the initial post-quota years due to the volumes of extra milk being predicted by the EU's largest milk processors.
This was the stark message from the Irish Dairy Board's (IDB) chief, Kevin Lane, who addressed farmers at the ICMSA's AGM in Limerick last week.
He said that the IDB expects Irish milk output to increase by 15-17pc during 2015, and to see see annual increases of 5-7pc up to 2020.
However, this significant rise in volume will be dwarfed by the increased volumes of milk expected to come on stream from some of the EU's biggest dairy processors.
Mr Lane said he had discussed projected milk volumes with the CEOs of Arla and Friesland Campina, who, combined, process almost four times Ireland's entire milk output.
Arla expects to increase milk volumes by 10pc by 2020, while Freisland Campina expect to process an extra 20pc.
"It's hard to see how we're not going to have a problem when these volumes come on stream," Mr Lane admitted to the AGM.
"So I'd share the minister's (Simon Coveney, Minister for Agriculture) concerns for milk prices in the years following quota," he said.