UFU Stays Positive About Future Milk Prices

UK - Speaking ahead of next week’s United Dairy Farmers Milk Auction, Ulster Farmers’ Union (UFU) Dairy Policy Chairman, William Cromie remains upbeat about the prospect of a further firming of prices.
calendar icon 18 December 2009
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Mr Cromie said: “Recent European Commission forecast data for 2010 is optimistic with indications that milk prices will stabilise, with current price levels being maintained and continued, growing demand for cheese.

"As all the market indicators point to a further levelling out of prices, with production levels still below average and continued demand from buyers for milk, Tuesday’s auction should deliver a stable return. Compared to this time last year, the current state of the market is more positive. The recovery in prices, both globally and locally, has continued and we welcome this uplift in returns”.

The UFU said increases in farm gate milk prices paid to United Dairy Farmers producers was very welcome. However the UFU expressed concern about the lower prices being paid by other processors.

William Cromie commented; “The range of prices paid by other processors in their milk cheques for this month is significantly lower than the United Dairy Farmers price. I would urge all buyers to pay their producers a price for their milk which reflects the current strong market”. 

Mr Cromie also urged dairy farmers to think carefully before committing to further investments. He said; “Dairy farmers have endured a very difficult period when prices were not covering the cost of production. Now that prices are recovering and confidence is slowly returning, producers should be careful not to indulge in unnecessary expenditure. They need to carefully manage finances and cash-flows at a time when on-farm incomes are still under pressure”.

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