Global dairy outlook means milk price can hold according to the IFA

IFA Dairy Chair Stephen Arthur said milk prices will be set next week for September and he called on all milk processors to hold milk prices at their current level.

After a turbulent August in terms of global dairy markets, early indications suggest that they have turned the corner.

The last three New Zealand Global Dairy Trade auctions reported positive trends, while both European and US dairy markets have also strengthened.  

“While it is early days, the recent positive sentiment in markets gives dairy processors much more confidence in terms of the short to medium-term outlook,” he said.

“Input costs on farms remain stubbornly high. This combined with continued difficult weather conditions has led to a substantial increase in the costs of production,” he said.

“Every single board member knows how hard this Autumn is on dairy farms. They must go into their boardrooms and fight to hold milk price this month. Every cent is needed on farms to cover current outgoings,” he concluded.