GDT price boost as dairy farmers face a ‘tight year’

WEST of Ireland dairy farmers fearing a tough year on the price front will be hoping that a small increase in the GDT (Global Dairy Trade) auction this week will be a step in the right direction.

The GDT posted an increase of 1.4% – the first rise in dairy prices of 2016 – a change in the trend of recent months, and one that could improve ‘the sentiment’ of milk producers.

Galway IFA Dairy Committee Chairman, Charlie Whiriskey, said that absolute bottom line in terms of milk prices in Ireland was not to let it slip below the breakeven point for dairy farmers of 25 cent per litre.

“We have been very active in terms of lobbying the co-ops over recent months to at least maintain the current milk price and this effort will be continuing over the coming weeks as we approach the peak of the milk production season,” Charlie Whiriskey told the Farming Tribune.

He said that the GDT increase this week was a positive development in terms of giving a slightly more optimistic outlook for the year ahead, although the overall price situation remained very tight.

“Milk output from West of Ireland dairy farms this year is likely to be up for the coming year and our aim is to maintain prices at least at current levels,” said Charlie Whiriskey.

At the GDT market – the results of which were published on Tuesday – casein (milk protein) rose by nearly 15%, skim milk powder was up by 1.3% and prices for whole milk powder was up by 5.5%.

For more, read this week’s Connacht Tribune.