He said positive developments in dairy markets during the second half of 2006 mean that Kerry dairy farmers can look forward to a good start to the year.

“Given the milk price and income difficulties experienced by dairy farmers in 2006, and despite the best efforts of the EU Commission to undermine milk price, the main dairy products prices all increased in the second half of 2006 on the EU internal market,” Mr Cronin said.

“Indications now are that world market prices are creeping upwards, all pointing to a positive dairy market in 2007,” he added.

Mr Cronin said the recent decisions of Kerry and Glanbia, combined with the increased bonus to co-ops from the Irish Dairy Board, were all positive developments and should be set against a background of improving market conditions in the dairy sector,” he added.

Source: The Kingdom