Latest news with #GlobalDairyTrade
Agriland
4 days ago
- Business
- Agriland
ICMSA: 50c/L base price ‘fully justified' for May milk
The Irish Creamery Milk Suppliers' Association (ICMSA) has said that a base price of 50c/L is 'fully justified' for May milk supplies. The chair of the association's dairy committee, Noel Murphy, made the comments ahead of milk price announcements for last month from co-ops. He said that co-op boards 'should resist any attempt for milk price reductions for May given the current conditions in the marketplace'. Noel Murphy, ICMSA Dairy Committee chair. Image: Domnick Walsh Eye Focus Murphy said that 'milk supplies globally and in particular in the EU remain constrained'. 'There is no evidence to suggest that milk supplies will increase to any great extent in the foreseeable future while demand for dairy products is strengthening in advance of the holiday period and dairy demand is looking strong in the medium term. 'The Global Dairy Trade (GDT) is higher today than it was at the start of 2025, the average milk price across the EU is at 53c/kg while the Dutch quotations have shown improvements in the order of 2c/L over the course of May,' he said. 'It would be simply unacceptable for milk processors, some of whom are conditioning farmers for a reduction, to cut milk prices to boost their own profits for 2025. 'The reality is that no one else in the milk processor supply chain will be taking or expected to take a cut,' he added. 'Co-op boards are fully justified in insisting that milk price is set at least at 50c/L for May milk and provide dairy farmers with the confidence to invest in their business and for the next generation to reconsider dairying as an attractive option for their future career. 'It is clear at this stage that dairy markets are relatively stable and dairy farmers expect at a minimum that their milk will remain stable or else move up to 50c/L if currently below that level,' Murphy said.
Agriland
6 days ago
- Business
- Agriland
Dairy trade: Further drop for Ornua PPI in May
The Ornua Monthly Purchase Price Index (PPI) for the month of May 2025 has seen a further decrease, following the same trend as the previous month. The PPI for May is 153.2, down from April's figure of 156.9. Ornua's estimate of member co-ops processing costs was 9.6c/L in the month (9.6c/L in the previous month). Ornua has stated that these estimated processing costs: Are based on Ornua's estimate of the average cost of processing the Ornua basket of products, which is not representative of any individual member co-op processor; Exclude any allowance for member co-op processor margin. Ornua calculation There are also based on an updated methodology (from March 1, 2024) which uses Ornua's initial estimate of member co-op processing costs from 2020 as a base and indexes the variable elements to external indices which will be updated quarterly in arrears. Ornua said that the estimated processing costs will also rise and fall quarterly in line with the movements in the variable costs (most notably energy) as per the external indices. After deducting estimated processing costs, Ornua's PPI implies an indicative return of 45.0c/L 5.1% VAT inclusive (decreased from the previous month of 46.3C/L) for milk of 3.6% fat and 3.3% protein which is net of Ornua costs to market. The results reflect weaker market returns for the month of May. In addition to the above, the 'Ornua Value Payment' payable to member co-ops in the month is €8.3m million, which equated to 3.7% of gross purchases in the month. The PPI relates to product settlements/payments for the month and for reasons of seasonality is not directly aligned with milk production and payment, according to Ornua. Dairy trade Meanwhile, yesterday (Tuesday, June 3) the Global Dairy Trade (GDT) index saw a second successive decrease in the index figure following the latest trading event. The index decreased by 1.6%, for an average price of €3,794 per metric tonne (mt). The index figure is now at 1,311. Of the 12 most recent GDT auction events back to December 17 (including Tuesday's event), the index has decreased six times, increased five times, and gone unchanged on one occasion. 166 bidders participated in yesterday's event, with 117 bidders emerging from 15 bidding rounds. The event lasted for two hours and 14 minutes, in which 16,307mt of product was sold.
NZ Herald
6 days ago
- Business
- NZ Herald
Listen to The Country: GDT analysis with Jarden's Mike McIntyre
Today on The Country radio show, host Jamie Mackay catches up with Jarden's head of commodities, Mike McIntyre, who took a closer look at the first Global Dairy Trade auction of the new season. On with the show: Christopher Luxon:
NZ Herald
23-05-2025
- Business
- NZ Herald
Costco butter: Wholesaler introduces purchase limits of 30 blocks but still sells out
Pak'nSave Westgate, just under 1.5km around the corner from Costco, was today selling the Pams Pure Butter 500g block for $8.29, or $1.66 per 100g, and the Anchor 500g was $9.99, or $2 per 100g. Woolworths Westgate, just a kilometre away from Costco, was today pricing its store-brand Woolworths Butter 500g at $8.49, or $1.70 per 100g, and Anchor 500g was $9.90, or $1.98 per 100g. It was no wonder there were reports of Costco's salted and unsalted varieties running out as shoppers took home trolley-loads of butter. Loyal customers have shared photographs from inside the store this week, showing lines of people waiting to get their hands on the cheap produce. Several customers have spoken of their disappointment after travelling some distance to the store specifically for the butter, only to find stocks had sold out. And today, photographs were posted on the store's unofficial Facebook page of notices inside the shop about purchase limits. 'Limit 30 blocks of butter per membership (i.e. per household),' the store's notices said. However, it seems the restrictions were not enough to keep enough stock on the shelves this morning. One Costco customer reported the store had run out of salted and unsalted butter at 10.24am, less than half an hour after opening time. Westpac economist Paul Clark has told the Herald that retail prices for butter generally moved in line with export prices. 'Given that, it is reasonable to suggest that, with Global Dairy Trade auction prices for butter having reached new highs, combined with a generally weaker New Zealand dollar … should see retail prices ratchet higher in coming months. 'It is also important to note that retail price adjustments do tend to lag as inventories decline.' At the latest Global Dairy Trade auction last month, the price of butter rose 1.5% to an average of US$7679/MT (metric tonne). That compares to an average price of US$6815 ($11,546) on January 7.
NZ Herald
21-05-2025
- Business
- NZ Herald
Dairy prices: New Zealand season ends on a flat note, will they stay high in 2026?
The last Global Dairy Trade auction for the 2024/25 season has ended on a flat note, yet prices remain elevated and are likely to support the $10kg/milksolids milk price that Fonterra has forecast for its farmers. The Global Dairy Trade (GDT) price index fell 0.9% this morning from the last
