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Ireland 01.02.2024

Ireland: A Positive Surge in Milk Prices Marks Year-End Trends

Source: The DairyNews
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In the most recent edition of the Milk Price Tracker, presented collaboratively by Agriland and the Irish Creamery Milk Suppliers Association (ICMSA), December unveils the pricing dynamics among major Irish dairy co-ops.
Ireland: A Positive Surge in Milk Prices Marks Year-End Trends
Each co-op's performance is graphically depicted, with a green arrow denoting a base milk price increase, a blank space indicating no change, and a red arrow signifying a decrease.
Crucially, the cent-per-litre (c/L) milk prices showcased in the table employ the widely accepted milk-pricing system, prevalent across Irish co-ops. It's noteworthy that a fixed-mass density factor of 1.03 is employed for the conversion from kilograms (kg) to litres (L), equating 1L of milk to 1.03kg.

Base prices are presented at standard fat and protein percentages (3.3% protein and 3.6% fat) and European criteria (3.4% protein and 4.2% fat). Additionally, the table features the maximum attainable price based on consistent levels of 3.3% protein and 3.6% fat.

The December 2023 milk prices reflect those quoted by co-ops, incorporating bonus and penalty payments centered on manufacturing milk. Notably, Tipperary introduces a 3c/L (excl. VAT) unconditional winter bonus for November milk, while Tirlán presents a 3.8c/L (excl. VAT) seasonality payment for December, applicable to creamery milk meeting quality criteria.

Conditional bonuses are also outlined, such as Arrabawn's 0.2c/L (excl. VAT) bonus for milk with a somatic cell count (SCC) below 200,000 cells/ml, and Aurivo's bonuses tied to storage capacity and protein achievement.

Carbery Group features bonuses ranging from 0.5c/L to 0.88c/L (excl. VAT) based on SCC and sustainability commitments, while Dairygold implements bonuses and penalties linked to various criteria, including total bacteria counts (TBC) and sustainability practices.

Tirlán is paying a Sustainability Action Payment of 0.47c/L (excl. VAT) for September;
Kerry pays a 0.4c/L (excl. VAT) bonus on all milk with an SCC fewer than 200,000 cell/ml and 0.1c/L (excl. VAT) for SDAS;
Lakelands is paying 4.75c/L (excl. VAT) bonus if more than 45% of May milk production was supplied in December;
North Cork paid a 0.2c/L (excl. VAT) bonus on all milk with an SCC of fewer than 200,000 cells/ml;
Strathroy paid a 0.25c/L (excl. VAT) bonus on all milk with an SCC of fewer than 200,000 cells/ml;
Strathroy also paid a 0.25c/L (excl. VAT) bonus on all milk with a TBC of fewer than 10,000 cells/ml;
Tipperary pays a bonus of 0.25c/L (excl. VAT) on all milk with an SCC below 250,000 cells/ml.
Becky Smith
Becky Smith
Analyst (Livestock) AHDB
China is an important buyer on the world dairy markets, with a strong influence on global demand that plays into price dynamics. Imports of dairy products to China continued to decline in 2023, driven by increased domestic production and weaker consumer demand.
Keith Woodford
Keith Woodford
principal consultant at Agri food Systems Ltd.
Synlait is in big trouble with losses mounting up and no easy answers, says Keith Woodford. For much of the past 20 years, Synlait was an entrepreneurial player in the New Zealand dairy industry, with a strong focus on growth. For a long time, it seemed to be doing everything right.