Last week NFU Dairy Board Chairman Michael Oakes attended the DIN Conference in London, he writes:
Having spent two days at the DIN conference this week I’m pretty confident that milk prices are stabilising and we should start to see positive price movements soon. UK milk buyers have been warning of increased supply but variable weather has impacted on recent grass growth and will no doubt impact on volumes. What really struck me at DIN was Sophie Helaine, the EU Commission’s Dairy Market Analyst’s comments that EU (and UK) butter prices are now so high that milk price can be remunerated even with low skimmed milk powder prices, and stock levels increasing. Traders also indicated that there was more interest in the protein (SMP) market. We need to see farmgate milk prices more closely match market indicators, and if they can’t processors need to explain why.
What also came out loud and clear was the need for better market data on volumes and prices. This is something the NFU has raised for the last 12 months but now even milk buyers, traders and manufacturers are joining the party.