Most of the co-op boards have decided in the last week to cut August milk price. Speaking to the Irish Farmers Journal, most co-op chairs are hopeful that’s the end of the price cuts for 2019. Prices for butter, whole milk powder and skimmed milk powder have all seen a rise this week. Lower deliveries to some of the main European players are also boosting sentiment.

Over the last number of weeks, butter prices across Europe have seen a bounce. Spot prices for butter are now trading around €3,300/t (ex-factory) but up to €3,600/t in places.

What’s the short-term milk price outlook?

  • Arrabawn chair Edward Carr: “That’s the end of the price cuts unless something happens we don’t know about. Butter and other market signals have improved.”
  • Glanbia chair Martin Keane: “It’s a wait and see for our business and another month will tell a lot. There is still a lot of uncertainty out there. Consumer sentiment is still that bit flat and it’s an unreceptive market.”
  • Dairygold chair John O’Gorman: “I expect that we are close to bottoming out. We are investing heavily so like all businesses we have financial commitments. I can’t guarantee anything, but I agree the market looks like it’s improving.”
  • Lakeland chair Alo Duffy: “Brexit is the big unknown but we are hopeful we will get a deal. Our value-added component is helping us. Butter was the concern, but the market seems to have stabilised.”
  • Aurivo chair Pat Duffy: “The sentiment is positive. Yesterday’s New Zealand auction result helped. The oil attack this week will probably hike processing costs, but, in time it might also help product price.”
  • Kerry spokesperson: “Global demand and pricing remain under pressure. Market expectations are for a gradual recovery through 2020.”
  • Carbery chair TJ Sullivan: “We’d be confident that the market is improving, but we have to qualify it as 31 October [Brexit] is coming, and there is no solution on the table just yet.”

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