Milk suppliers are set to get a boost from Dairygold’s decision to hold its June prices at 37/c/l (inclusive of VAT). Prices were widely expected to be reduced in the light of a poor Global Dairy Trade auction, which saw an 8.9% drop, reflecting weaker global demand for whole milk powder. Aurivo and Kerry Co-op both reduced their June prices and is now at 37/c/l.
One of the key issues facing milk suppliers is supply exceeding demand. Global supply for milk grew by 4.9% but demand only grew by 2.5%.
Pat McCormack, of the Irish Creamery Milk Suppliers Association, welcomed the decision to hold prices, enabling farmers to be in a strong financial position in the coming year: “[…]dairy farmers can enter 2015 in a relatively strong position and meet their investment costs where they are expanding and taking on the substantial debt that involves.”