Market report: Milk prices fall in Northern Ireland

Milk prices at the June United Dairy Farmers auction in Northern Ireland fell by 1.15p/litre, month-on-month, to average 25.38p/litre.

It was the first time prices had fallen for four months, with an unusually high volume of 53m litres traded – 11m litres higher than June last year.

“The recovery in milk supplies in Ireland with a higher, longer peak and good grazing conditions contributed to this,” said DairyCo’s latest market report.

“Although higher than usual volumes may have influenced the auction result, another factor was probably a slightly more cautious note in some UK, European and world wholesale markets, where powder prices in June held at or fell from their May levels.”

UK butter prices levelled off in June, but bulk wholesale cream values remained firm due to good Continental demand. Skimmed milk powder prices in the EU dropped by about 7%, but were still 20% higher than in January, said the report. “Mature cheddar levels have increased for the first time in 18 months, with average prices up by around £100/t to £3050/t.”