Milk supply was down 2.4% in January, figures published by the CSO show.

Domestic milk intake by creameries and pasteurisers was estimated at 178.8m litres for January 2023, a decrease when compared with January 2022.

Fat content rose from 4.41% in January 2022 to 4.47% in January 2023.

Protein content also increased from 3.47% to 3.5% over the same period.

Skim milk powder production grew marginally from 5,200 tonnes in January 2022 to 5,900 tonnes in January 2023.

Butter production decreased from 6,700 tonnes in January 2022 to 5,600 tonnes in January 2023.

CSO statistician in the agriculture section Grzegorz Głaczyński added that in 2022, Ireland ranked sixth in European milk intake by creameries and pasteurisers.

Milk price cuts

Suppliers experienced price cuts in January, with the Irish Farmers’ Association warning in recent weeks that the drops of between 5c and 7c per litre had effectively eliminated the liquid milk premium paid to producers.

With autumn calvers at peak milk production in January, IFA liquid milk chair Keith O’Boyle said that milk price cuts of this magnitude “have a profound impact on our profitability and effectively wipe out our premium”.

Input costs for dairy farmers producing fresh milk through the winter months remain at an all-time high, as there is a greater dependence on the use of concentrate feed which is costing in excess of €500 per tonne at present, the IFA warned.

“We simply cannot afford to take these kinds of hits to our profit margins,” Mr O’Boyle continued.

“Without a liquid milk premium, the supply of daily fresh milk for supermarket shelves will become unsustainable.”