There may be some good news on the horizon for the UK's dairy farmers, after a Dutch dairy co-operative, Friesland Campina, announced an increase in milk prices for February. The rise of €1.25/100kg (around 0.9ppl) was due to better than expected prices for milk powder, butter and foil cheeses.
Export conditions have also been improved significantly by a weak euro, helping dairy producers in the Netherlands even further. Farmers in the country, like many across Europe, saw a signfiicant decrease in prices last year. It was hit hard, with a 30% decrease in prices. Ireland saw a 21% decline in prices, while the UK saw a 19% decline in milk prices.
What every dairy farmer will be looking for is whether the increase seen is only temporary or if it is the first true sign of stability in the market? One key indicator will be the results of the Fonterra Global Dairy Trade (GDT) auction. The last auction held on 17th February showed an increase of around 10% in all products traded. If more co-operatives follow suit and prices remain constant, this could be an indicator of stability.