Speaking following the 15% increase in the GDT, the Chairperson of ICMSA’s Dairy Committee said that it placed the recent steady increases recorded ‘in the shade’ and makes overwhelming the case for a farmer price increase for February milk. Ger Quain noted that it also sets up peak milk supply to be produced at a strong milk price.
“Dairy markets are performing well at present and – as ICMSA already predicted – this will manifest itself in a higher milk price for farmer-suppliers. The strong increases of butter by over 13% and WMP by 21% shows where demand in the dairy products is coming from in this latest GDT. This latest data means that 11 out of the last 12 results have seen positive GDT returns going back to last September.
“The other point to note is that while the results are much higher than expected in percentage terms, they are by no means an outlier or ‘out of sync’ in terms of the trend or direction of milk price. This latest round of results puts the case for farmer price increases next month absolutely beyond a doubt and makes them very likely for the months after that too”, said Mr Quain.