GHEE PRICES UNLIKELY TO COME DOWN.
IN INDIA IT MAY GO UP ONCE SEASON ENDS AS INDIAN GHEE PRICES ARE LOWER THEN WORLD PRICES
Driven by consumer demand, European butter prices have surged to reach almost €6,500/t in recent days.
Figures from the European Commission’s Milk Market Observatory (MMO) show that butter prices stood at €6,470/t on September 20 – 74% higher than the corresponding period in 2016.
The price has almost risen constantly since May 2016, when it made in the region of €2,500/t. Between then and now, prices have improved by nearly 160%.
Speaking to Agri Land on the record butter prices currently being witnessed, ICMSA (Irish Creamery Milk Suppliers Association) President John Comer said: “A butter bubble is potentially around the corner.
Butter prices have reached $7,000/t. Consumers haven’t rejected the product at that price up until now. However, there seems to be some evidence to suggest that’s just about to happen.
Comer added that powder prices need to rise to compensate for any potential decline in butter prices.
“There doesn’t seem to be any evidence of that happening currently. Even at the latest GDT auction, powder prices were down slightly and butter was back up again.”
In terms of what it means to the farm gate milk price, he said: “I think there is going to be another 1-1.5c/L [milk price increase] and then it will plateau at that.”
Comer also touched on some positives in the dairy market, saying: “Consumer resilience to the higher prices that we are currently facing is very good.
“The nutritional value of the product we produce has been underpinned by nutritionists and everybody is incorporating dairy into their daily diet across the globe.”
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