Positive Market Conditions Ahead of Milk Auction

NORTHERN IRELAND - Current positive market conditions in the dairy sector should be reflected in prices paid at this weeks Northern Ireland Milk Auction.
calendar icon 25 November 2009
clock icon 1 minute read

Speaking ahead of Thursday’s auction, Ulster Farmers' Union Dairy Chairman William Cromie said: “World dairy market prices remain strong, underpinned by supply shortages in Australia and New Zealand. There is upward pressure on Skimmed Milk Powder market prices and Whole Milk Powder prices rose 14 per cent at the last Fonterra milk auction in New Zealand."

Mr Cromie added: “European milk supplies are currently at their seasonal low and the production of Whole Milk Powder is at a low level. Despite the EU Commission’s decision to end Export Refunds, market prices for milk powder have remained stable. There has been a rise in milk production in GB, but in Northern Ireland production from January to October 2009 has fallen by 82m litres (-7.2 per cent) compared to last year, which means that milk is still in scarce supply. There is also a strong demand for cheese”.

“Given these very favourable market conditions, the UFU will be looking for at least a stabilisation of prices at the Milk Auction on Thursday. It is very important that our milk processors take full advantage of the recovery in the dairy market and ensure that producers also benefit."

The October NI milk auction recorded an 18.3 per cent price increase, from 23.9 pence per litre to 28.29 pence per litre.

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