Signs of stability return to NI milk auction

Milk prices at United Dairy Farmers’ latest auction appear to have stabilised, easing by just 0.3p/litre to average 21.53p/litre.

The sale saw 46m litres of milk sold for June delivery, 6m litres less than the same time last year, when prices averaged 26.52p/litre. “This auction result will give some encouragement to farmers that markets are stabilising,” said chief executive David Dobbin. “Prices were only 1.5% below last month despite a 9% fall in whole milk powder prices at the most recent Fonterra auction and sterling hitting a four-year high against the euro last week.”

The auction result was helped by a drop in milk supplies following the cooler and wetter April weather, he added. “Powder and butter prices now appear to be bottoming out as we move through the EU milk production peak and milk supply moderates. However, the euro crisis still poses a real threat to milk prices.”

Values should slowly climb as production dropped away from the spring peak. “However, prices are unlikely to fully recover until global milk production reduces to more sustainable levels.”

Market prices