This is a subscriber-only article
ICMSA dairy chair Ger Quain has said the minimum price that all co-ops should be pay for October milk is 32c/l based on current market indicators.
Quain said that the strength of the PPI index and other market indicators over the last number of months should ensure price for the remainder of the year should remain in a positive position.
“The offering of a Fixed Milk Price Scheme from Carbery at 33c/l for the next three years is a major statement in terms of market confidence. The scheme shows that companies are willing to commit even in a Brexit and COVID-19 world.”
Stable outlook
ICMSA praised steady demand for dairy products across Europe, noting a marked increase in Asia during 2020, suggesting the region is absorbing the extra supply of global milk.
Quain continued: “Dutch dairy quotations for the key indicator butter and skim milk powder mix have seen an upward trend since the start of September. The whole milk powder price mix has remained steady since July with relatively little movement up or down in that time.
“This all leads to a stable outlook for the remainder of the year meaning that processors and co-ops must be looking at spring 2021 to make sure that prices can start off the new year on a positive note.”
SHARING OPTIONS: