The former chairman of Dairygold Bertie O’Leary has stated that the price of milk in 2018 is likely to decrease.
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O’Leary made the comments to the Irish Farmers Journal at an award ceremony on the 15 December where the Irish Co-operative Organisation Society (ICOS) presented him with the Plunkett Award for Co-Operative Endeavour.
It is the industry’s highest national honour, and the Cork native is the fifth person from Dairygold in the awards history to receive it.
It's hard to predict but one things for sure it's going to come down.
During the night, Mr O’Leary was commended for his straight talking attitude and sound business sense.
The former chairman of Dairygold and President of ICOS, was also praised for his involvement in pioneering the introduction of milk supply agreements and milk volume forecasting within the dairy industry.
Future predictions
Despite the strong prices dairy farmers have been receiving in 2017, O’Leary warned that 2018 would not be as good for dairy farmers.
Big smiles all around as Bertie O'Leary receives the Plunkett award at @ICOSDublin for services to the #dairy industry. pic.twitter.com/qtou7mdTgg
— Farmers Journal (@farmersjournal) December 15, 2017
“It all depends on the market, we had a meeting the other night and Jim Woulfe was telling us that consumption was going up by 1.8% a year," O’Leary said.
“Well, I think supply will be over 2% this coming year so there will be a drop in the price of milk, but that's the way it's going to be.
“It's hard to predict but one things for sure it's going to come down.”
Hard times
O’Leary commented on the changes he has seen within the industry.
“2009 was a very tough time, financially the bubble had burst, a lot of cash had been spent.
“But Jim Woulfe [Dairygold CEO] was very good , and put a good team together.
“Milk price fell down to 21c/l but in September 2009 it increased by a cent and that was the start of the climb back, and milk went up too 39c/l.
But 21c/l was the lowest I saw it and times were tough for farmers on the ground and in the co-op as well.”
Young farmers
Despite market fluctuations O’Leary would still encourage young people to take up dairy farming is they have the opportunity.
“My father gave me the farm when I was 19, a young fella with no sense.”
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