Market returns on Irish dairy products indicates scope for a valid increase in the price paid for July milk, according to Irish Farmers Association (IFA) Dairy Chairman Stephen Arthur.
“The Ornua PPI showed further increases in July, which points to a continued demand for Irish dairy produce. Processors in Denmark and the Netherlands, among others, have already increased their August milk price; Irish processors have to follow suit,” he said.
Nevertheless, milk supply worldwide is lagging behind 2021. With the elevated costs of agricultural inputs showing no sign of abating, global milk supply is likely to remain constrained for the remainder of this year.
The IFA National Dairy Chair concluded: “In many parts of the country, grass growth is depressed and the cost of production continues to rise. If processors want to have adequate supplies of milk into the autumn, then they need to step forward now with a price increase to give farmers confidence that they can make a reasonable return over the next few months.”
Fun facts
In 2021, the value of the dairy market worldwide was estimated to be about US$ 871 billion, which is projected to grow to USD 1,128 billion by 2026.
The leading producer of cow milk worldwide was the European Union in 2021. In that year, the 27 countries of the European Union collectively produced about 145.7 million metric tons of cow milk.