9 October 2009

2 minute read

Europe

Mr Cromie said: “The average price achieved across all contracts and contract periods for Whole Milk Powder (WMP) was US$3,022 per tonne.

"This was US$164 per tonne higher than the September event, which is the equivalent to an increase of nearly 2p per litre and displayed further evidence of the continued global recovery and a firming-up of demand.

"With large increases in the Fonterra auction held in August and September of 25.81 per cent and 24.21 per cent respectively, sceptics had raised doubts that the increases were happening too quickly and a sustained growth was not guaranteed. Our optimism of the last three months has proven justified and the global dairy market situation is improving.

"New Zealand production has picked up after a very sluggish start, but prices have still increased, this is a further sign of the positivity in the global markets and improved consumer demand.”

Mr Cromie added: “On a European level, price buoyancy is also reflected in the fact that in September, 15,000 tonnes of butter was released from Private Storage Aid and butter prices have remained on the up.

"However, we will continue our call for Intervention stocks to be managed in a controlled manner. Optimism in Europe and the continued rise in prices in New Zealand must be reflected in the next United Dairy Farmers Auction, which is due to be held on 22 October.

"As there is a clear correlation between the two sets of auction results, coupled with a combination of reduced stocks and the resurgent Euro, industry sources I have spoken to are expecting another increase in the price of milk at the auction”.

He concluded: “We will be continuing with our ‘Roadmap to Recovery’ and seeking a sustainable dairy price which will mean that our Dairy industry here in Northern Ireland can progress into the future.”

TheCattleSite News Desk