Early indicators of dairy markets in 2014 make for positive reading and milk prices have the potential to increase on the back of this buoyant market, according Mr Pat McCormack, Deputy President and Chairperson of ICMSA’s Dairy Committee.
“Current market indicators highlight the ongoing strong demand for dairy products. Increases in the Global Dairy Trade Auction shows that there was strong demand for products such as casein, butter and SMP, while the Dutch dairy quotations are reflecting a stronger market for dairy products in the EU,” he said.
Pressure on milk price was expected early in 2014 due to supply in the major milk producing nations rebounding in the second half of 2013 and lower grain prices, but increased demand and replenishment of stocks show that markets continue to thrive and the outlook is certainly positive”, said Mr McCormack
“Overall, EU markets indicators have seen prices for products with Butter, SMP, WMP holding firm or increasing. In the Southern hemisphere, the Global Trade Index has held the gains achieved for a weighted product basket over the last eight months. Indeed, current information by Rabobank analysts shows market indicators are positive for the first 2-3 quarters of 2014.
“ICMSA feels that further increases in milk price would be merited from processors in the early months of 2014 with an increase in January milk price sending out a early positive signal.”