The Irish Farmers Association has said that the sale of 41,958 tonnes of skimmed milk powder (SMP) by the European Commission shows that the dairy markets are recovering.
The EU Commission sold the SMP out of intervention for a minimum price of €1150 per tonne, €100 per tonne higher than last in April.
The IFA said that this is a total reduction of over 76,000t in the intervention stock overhang.
Dairy Chairman Tom Phelan said, “Buyers’ understanding that the days of cheap dairy products are over is also in evidence in rising international prices, which in the last week returned between 31c/l (EU MMO) and 34c/l (average of European spots) before VAT for an Irish product mix, after deduction of a nominal 5c/l processing cost.”
“Co-ops don’t just trade in standard SMP and butter, however, with higher value fat filled powders, whey products and infant formula ingredients increasingly important in their product mixes.”
In light of this news, Phelan has urged co-ops to stop talking down milk prices, and to “start leveraging the improved returns for the benefit of farmers.”
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.