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HomeDairy Over €7,000 gap between highest and lowest-paying milk processors
Catherina Cunnane
Catherina Cunnanehttps://www.thatsfarming.com/
Catherina Cunnane hails from a sixth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the firm during its start-up phase in 2015.
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 Over €7,000 gap between highest and lowest-paying milk processors

Milk prices in Ireland 

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

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

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.

The chairman of the committee, Stephen Arthur, said the analysis’ purpose is to allow farmers to compare prices milk processors pay on a like-for-like basis.

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.

Processor
Source: IFA
Milk quality

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

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“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).
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