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TheDairySite Newsletter - 04 December 2015

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Friday 4th December 2015.
Alice Mitchell - Editor

Alice Mitchell

MSD Animal Health

Global Dairy Trade Auction Sees Price Upswing

In market news this week, the Global Dairy Trade (GDT) price index showed a 3.6 per cent increase from the previous trading event, at an average price of $2,419 (USD/MT, FAS).

Skim milk powder increased in price by 3.2 per cent, whilst whole milk powder increased by 5.3 per cent at the auction on Tuesday.

The Irish Farmers' Association National Dairy Committee Chairman, Sean O’Leary, said the auction should be read in the context of a slow rebalancing of dairy markets.

He said auction results were improved by the low volumes of dairy products going through, as New Zealand production falls, and the US, Germany and France show almost static supply levels.

However, he cautioned: “It is important to remain realistic: even if prices remain unchanged, milk receipts to farmers will disimprove over the coming months because of lower volumes and constituents, and it will be some time before we see an upswing in farm gate prices.” – Click here to read more.

A new report from economists at Teagasc in Ireland said this week that overall family farm incomes declined by 9 per cent in 2015.

Income levels increased across most farm systems, and buoyant beef and lamb prices boosted incomes on livestock farms, but the average farm income still decreased due to the effect of the falling milk price.

“This demonstrates the growing importance of the dairy industry to Irish farming," said Thia Hennessy, one of the report’s authors.

The report suggested that family farm incomes could be up by 5 per cent in 2016.

The removal of the milk quota has seen dairy cow numbers rise sharply in Ireland in recent years, so further expansion in milk production is expected in 2016. This, coupled with a modest improvement in milk prices, should see dairy farm incomes continue to recover next year, the economists concluded - read more.

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