Dairy industry | Over €7,000 gap between highest and lowest-paying milk processors

The IFA’s latest analysis of milk prices in Ireland shows a difference of €7,386 between the highest and lowest-paying processors.

Milk prices in Ireland

The latest milk price analysis that its dairy committee undertook shows “significant” differences between the price the country’s 12 milk processors pay.

Mirá también:

Milk production could fall 5% this year as input costs bite, AHDB warns

The farm organisation based its analysis on milk statements that farmers supplied to its dairy committee.

It is based on revenue generated in 2021 by a spring-calving herd supplying 500,000l/year to their milk processor.

The farm group based the exercise on 89 cows producing 500,000l through a spring-calving system using the Teagasc Moorepark spring-calving supply profile.
It is assumed that each farmer produced milk with average solids each month.
Also, it does not include any trading bonuses, fixed price schemes or forward contracts.

It ranks processors in order of the annual income that would be generated and is adjusted for milk constituents.

Mirá también:

Profitable pastures highlighted in new index tables

Its 2019 analysis showed a gap of €16,481 between the highest and lowest payers. Meanwhile, in 2020, according to the farm organisation, the gap widened to €16,896.

Milk quality

Arthur said that “dairy farmers have been working hard to improve their milk constituents over the years”.

– Advertisement –

“This can give the impression that milk price has improved, when in reality, it is the milk quality that has improved.”

“This has masked the fact milk price is effectively the same over the past thirty years.”

“We believe the analysis will provide more price transparency. We will continue to publish it on an annual basis,” he added.

Milk prices: March 2022:

Lakeland Dairies to pay 47.1c/L (inclusive of lactose bonus and VAT) for milk at 3.6% fat and 3.3% protein to ROI suppliers. It has increased its milk price by 2.8p/L to 37.5 p/L in Northern Ireland.
Glanbia to pay 47.08c/L (including VAT) for creamery milk supplies at 3.6% butterfat and 3.3% protein. Therefore, the overall Glanbia price of 47.08c/L for member milk suppliers includes a base milk price for March of 46.58c/L (including VAT). According to the processor, this is an increase of 5c/L from its February base price of 41.58c/L (including VAT).

Look also

Increased Dairy Processing Capacity Coming Online This Year

You may be interested in

EU, Mexico finalise “modernized” trade deal

Increased Dairy Processing Capacity Coming Online This Year

USDA Decision A ‘Victory For Dairy Farmers,’ Langworthy Says

Topics |
Dairy industry, Dairy prices, Dairy Processors, Dairy production, Milk

Legal Notice

Legal notice about Intellectual Property in digital contents. All information contained in these pages that is NOT owned by eDairy News and is NOT considered “public domain” by legal regulations, are registered trademarks of their respective owners and recognized by our company as such. The publication on the eDairy News website is made for the purpose of gathering information, respecting the rules contained in the Berne Convention for the Protection of Literary and Artistic Works; in Law 11.723 and other applicable rules. Any claim arising from the information contained in the eDairy News website shall be subject to the jurisdiction of the Ordinary Courts of the First Judicial District of the Province of Córdoba, Argentina, with seat in the City of Córdoba, excluding any other jurisdiction, including the Federal.