A local farmer has said that the global milk market is based on butter.
The Irish Farmers' Association's (IFA) dairy chair, Martin McElearney believes that an oversupply of butter in the international market has led to a drop in prices in recent months.
The Drumhowan man said: "It’s all based on butter, the whole market is based on butter in 2025.
"It was up at something like €7,000 a tonne, and now it’s back at somewhere around €5,500. It’s oversupply across the world markets.
"Buyers sentiment has been dear, and the have stopped buying a commodity. When they stop buying, it has the bottom out, and then they start buying again," McElearney added.
According to the dairy farmer, US tariffs haven't had that big of an impact on milk prices.
"It will bounce back, but when it bounces back is the issue. Do we get bounce back before the end of year? Or do we get bounce back in the first quarter of next year, or in the middle of next year?" McElearney added.
