Dairy product prices fell 3% at today's Global Dairy Trade auction, bringing to an end the increases seen in auction prices during the last four marketing events.
Whole Milk Powder prices dropped by 3.8%, while Skimmed Milk Powder (SMP) declined by 3.8%.
All of the other commodities on offer at today's auction posted a decrease in values, with the exception of Butter Milk Powder (BMP) which increased by 9%.
- AMF index down 1.0%, average price US$4,954/MT
- Butter index down 0.3%, average price US$3,891/MT
- BMP index up 9.3%, average price US$2,408/MT
- Ched index down 2.3%, average price US$3,430/MT
- LAC index down 9.7%, average price US$744/MT
- RenCas index down 3.7%, average price US$6,574/MT
- SMP index down 3.9%, average price US$2,209/MT
- WMP index down 3.8%, average price US$2,681/MT
'EU dairy markets are still buoyant'
Responding, IFA dairy committee chairman Sean O’Leary said that the drop in price, although disappointing, was not critically important.
The recovery trend remains solid, he said, with output easing in all regions bar the US, while European Union dairy returns are up the equivalent of 10c/L in the last five months.
This, he said, should give co-ops, whose boards will be meeting from next week to decide on the September milk price, the confidence to further increase it for this and for the coming months, he said.
ICMSA deputy president Pat McCormack described the fall in the GDT index as “a small bit of a disappointment.
“They need to be fully analysed in the context of the quantities offered and the actual trading terms.
“However, dairy markets remain fundamentally string at the present time. The most recent Dutch auction returns reflect this reality. It will also take a few weeks for the impact of the EU voluntary reduction scheme to have its full impact on the market.
“The reality is that Irish co-ops now have an opportunity to deliver much improved prices to dairy farmers. And they must deliver on this critical issue," he said.
August Milk Price Increases
A number of creameries moved to increase the price paid for August supplies by between 1-2.5c/L.
Kerry had increased its milk price for August supplies by 2.5c/L, while Lakeland Dairies moved to rise the base price by 1c/L. This put both processors on a base price of 25c/L.
Glanbia member supplies were also paid 25c/L for August supplies, which included a 2c/L Glanbia Co-operative Society support payment to its members.
Glanbia Ingredients Ireland (GII) had also increased its base price by 2c/L to 23c/L including VAT for manufacturing supplies at 3.6% fat and 3.3% protein.