Allister welcomes milk powder recovery
05 September 2009
TUV Leader Jim Allister has expressed relief at the substantial increase in whole milk powder prices at the Fonterra auction. With most of Northern Ireland’s milk production going into powder for export, the farmgate price is heavily dependent on the global powder price.
In a statement Mr Allister said:-
“The recovery in demand for whole milk powder on the world market, as reflected in the Fonterra price, is good news. The hope now is that this will lead recovery in international dairy markets. With our heavy dependence on whole milk powder exports I am looking for a knock-on rise in farmgate milk prices.
“Whereas sustained robust demand over a longer period is necessary to ensure we’ve turned the corner, the movement is certainly in the right direction. Keeping milk powder on the right side of US$2500 is crucial.
“Volatility can never be fully removed from any global market, so caution remains the watchword. Thus abandonment of support mechanisms in Europe, at the first sign of an upturn, is not the way to go. Rather, putting and keeping in place a viable floor in the market remains essential.
“If markets do turn and supply increases, then fresh risk looms in the context of the EU’s determination to wipe out milk quotas. Such, as I’ve often warned, is not, I fear in the long-term interests of Northern Ireland producers, given the increased production and competition which would flow from the Republic.
Restructuring our commodity output remains essential to an enduring future for our industry. In this I continue to be disappointed by the lack of investment by the Stormont Executive. The dearth of funding in Pillar One of Rural Development remains an inhibiting factor. We’ve had talk for years of the need for strategic direction for the industry, but the Executive has done little to change things.”
