Price of butter cut for January
The Irish Dairy Board (IDB) has cut returns for butter by €100/t for January supplies.
This is the second month in a row that the IDB has cut prices, with returns to milk processors now €250/t below November levels.
The reduction in butter values over the past two months equates to a drop in milk price of 1c/l. But the general view is that the price paid to farmers will hold for January and February at least.
The weaker demand for butter has been blamed on stronger milk supplies in New Zealand (up 10pc) and the US (up 2pc).
In contrast to butter, which is trading for around €3,300/t, the markets for whey and skim milk powder are steady.