European Commission officials have confirmed that dairy commodity prices within the EU will rise significantly over the next 10 years.
Figures released in Brussels this week to members of the Guild of Agricultural journalists, who were in the Belgian capital on a fact finding visit, point to an ever strengthening market for cheese, butter, skimmed milk powders (SMP) and whole milk powders (WMP) over the next decade. Compared with the ten year period ending 2006, the relative increases now expected for the decade up to 2016 are as follows - Cheese +38 per cent; Butter +24 per cent; SMP +40 per cent and WMP: +35 per cent.
But there is also anticipation that the price of more value added dairy products will rise by even higher levels during the period ahead.
"Northern Ireland must commit to developing innovate, processed food products with a high value added dimension," the Commission's director for trade David O'Sullivan told Farming Life.
Commission representatives in Brussels also confirmed that milk output in the EU for the year ending March 31, 2008, is likely to be some 2.5 to 3.0 million tonnes below Europe's total quota threshold. For the twelve months ending March 31 2007, the production undershoot amounted to approximately 2.0 million tonnes.
