Further Signs Of Price Stability In Milk Auction

NORTHERN IRELAND, UK - The latest Northern Ireland milk auction saw prices dip slightly from last month’s average price of 24.05 pence per litre (ppl) to 23.32 pence per litre based on 45 million litres traded for March delivery, but the Ulster Farmers’ Union (UFU) remains positive saying that this an accurate reflection of current market conditions, both locally and globally.
calendar icon 1 March 2010
clock icon 1 minute read

UFU Deputy President, John Thompson said; “Although the auction milk price has fallen slightly, this is what we predicted. The Fonterra Whole Milk Powder Auction, which is proving to be a very accurate barometer for our own auction, experienced a similar drop at the beginning of the month. However, global demand remains positive which has been clearly demonstrated by Algeria announcing a tender for Whole Milk and Skimmed Milk Powder for the next three months. A substantial volume of this is being supplied by the EU, which is in itself is clear evidence that global demand is remaining strong.”

“Normally at this time of year we would expect downward price pressure in the market as milk supplies rise as we enter the spring, but NI milk deliveries were 6.7 per cent (10m litres) lower at 139m litres for January and industry predictions are that production will continue to be below the forecast levels”.

Mr Thompson added; “The next few months are crucial for NI dairy farmers but if global demand continues to stabilise as forecasted, this should be reflected in the auction and there is no reason why our dairy farmers should not continue to receive an acceptable price for their milk.”

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