Organic milk beating crunch
Prediction of stability above 30p
By Richard Halloran
Farming Life Today -
Published Date: 29
October 2008
The man at the helm of
"Our October milk cheques
were based on a farmgate price of 34 pence per litre," confirmed United Irish Organics' managing
director Rex Humphrey.
"Prices might drop by two pence next month with the
effects of the fall-off in consumer spending. But I am hopeful that the market
will rally again in the run-up to Christmas.
"Half of our milk goes to the liquid market with the
rest used to produce organic milk powders and butter. And yes demand for food
ingredients from the organic dairy sector has fallen considerably over recent
weeks. However, demand may well pick up again in thre
not too distant future as the market settles down at a more realistic level."
He added: "The media is totally focussed
on the so called 'credit crunch' at the present time, so much so that they are
danger of making it a self fulfilling prophecy."
With regard to the crash in prices recorded at United Dairy
Farmers' latest auction Rex Humphrey pointed out that the organic and
traditional milk sectors are operating in two entirely different markets.
"We are an example of what can be achieved by adding
value to milk," he explained.
"There has been considerable growth achieved within the
organic sector since our inception almost 10 years ago.
"Back in 1999 total sales of organic milk in
"This year we, and our partners, will process
approximately 7 million litres of organic milk for
both local consumption and export. All of the milk is produced by the cows on
our own farm and those of our additional farmer suppliers.
"Our business plan is a simple one: to produce organic
milk as efficiently as possible and work with the professionals, who market it,
again in the most efficient way possible."
Rex Humphrey concluded: "Yes these are challenging
times for the commodity-based milk sector. But panicking is not the answer. It's
time for everyone to hold their nerve."
* Last Updated: 29
October 2008 8:41 AM
* Source: n/a
* Location:
farminglife.com