- Data Sources and Calculations are transparent, and are explained in the notes below. This pricing table is an indicator of milk prices across Ireland and the world. There will be some nuances in the milk prices due to currency fluctuations from month to month. Also, we have tried where possible to utilise a standard fat and protein to reflect Irish milk production. We have also used a fixed Mass Density Factor when converting Milk from Kilograms to Litres.
- Milk density factor: 1.0297 ratio factor used to convert between volume in litres and kilograms of milk, i.e. 1 litre of milk corresponds to 1.0297 kg of milk.
- 3.90% Fat Standard & 3.35% Protein Standard: to present a representative Farm Gate Milk Price, we are taking the average annual Protein% and Fat% for the last three years as published by the Central Statistics Office (CSO) in their Intake of Cows Milk by Creameries and Pasteurisers report. This average has been rounded down to the nearest five hundreds of a percent. Agriland has taken the average of the last three years for Protein (3.37% – 2011, 3.36% – 2012, 3.39% – 2013) and Butterfat (3.89% – 2011, 3.94% – 2012, 3.39% – 2013). The average of these results have been round down to the nearest 0.05.
- The Agriland Farmgate Milk Price primarily presents milk price information in € per 100kg. In doing so we hope that this will focus farmers attention on the “A” and “B” value of milk constituents. However, we are also showing the familiar A + B – C price in cents per litre.
- Only the prices of Irish co-ops utilizing the A + B – C milk pricing system are used in this table.
- Irish milk prices displayed are done so on the basis of national milk quality averages of 3.90% Butterfat, 3.35% Protein and SCC averages of 252,000. All prices are exclusive of VAT credit. Where possible, overseas prices have been converted into Irish constituent values. The exceptions to this rule are the IFCN and Russian Farm Gate Prices. The prices stated present a “Farm Gate” price and do not include quality bonuses. Prices are calculated as per the printed prices on the farmer milk statements of the respective co-ops. Any exceptions to this are documents in the notes section under the Farm Gate Milk Price Table.
- The Agriland Farmgate Milk Price table includes published prices from across the world: Friesland Campina Farmgate Price is calculated from 46 billion tonnes of milk purchased across continental Europe on a monthly basis). Arla in Denmark have a milk pool similar in size to Ireland & they export 80% of their product is exported. The Fonterra Farmgate Milk Price as New Zealand is the world’s largest exporter of dairy products. The USA Class III & Class IV milk prices (the world’s largest dairy processing market). Russia (a key emerging dairy market for Irish dairy products). The Irish, FrieslandCampina, Arla-Denmark, Fonterra, USA, and Russian Farmgate milk prices represent close to 200 million tonnes of the world’s annual milk production, or 25% of global production. We have also included the IFCN World Milk Price Indicator.
- The Farmgate Milk Price for Irish Farmers is calculated using the following equation (“A” Protein price per kg * 3.35%) + (“B” Fat price per kg * 3.90%) = Price / € per 100kg of milk. To convert this price to cents per litre, the €/100kg price is converted to litres by multiplying it by the “Mass Density Factor” and subtracting the transport / processing, “C” cost.
- Prices are also based on an average SCC of 252,000. Source: Teagasc Sectorial Road Map for Dairy 2013.
- The average TBC in Ireland for the last number of years has been ~20,000. Source: Teagasc
- Ireland exports 85% of its dairy products. We have included prices from Denmark, New Zealand, the Netherlands, USA, Russia and the IFCN World Milk Price to give indicatory milk prices from across the globe. With the exception of the Russian and the IFCN World Milk Price all prices are converted to reflect the Irish Standards listed above.
- FrieslandCampina: Friesland Campina Price is calculated using the following formula, (“A” Protein price per kg * 3.35%) + (“B” Fat price per kg * 3.90%) = Price / € per 100kg of milk. Data Source: Friesland Campina Website.
- Arla Foods: Arla Foods Denmark Price is calculated using the following formula, (“A” Protein price per kg * 3.35%) + (“B” Fat price per kg * 3.90%) = Price / € per 100kg of milk. Prices converted from Danish Kroner into Euro. The prices presented do not include Quality and other bonuses. Data Source: Arla Foods, Denmark Website.
- Fonterra Farmgate Milk Price: Price listed in NZ$ per KG/MS. Converted to € per KG/MS. Prices converted from Kgs of Milk Solids to Price per Kg / Litres utilizing constituents of 3.90% Butterfat and 3.35% Protein. The Fonterra price includes both the Forecast Farmgate Milk Price and Forecast Cash Dividend Payout. Data Source: Fonterra Website
- USA Class III (Central): Class III Milk is used for cheese production, i.e. what we would call Liquid Milk in Ireland. USA milk production is linked to a federal price system. Typically these prices are reported on the basis of a 3.5% butterfat standard. The figures presented here are presented on the basis of 3.90% butterfat to reflect Irish conditions. The price used here is taken from the “Central” federal region. The price is calculated as follows: Class III price = (Class III skim milk price x 0.961) + (Class III butterfat price x 3.90). Data Source: USDA AMS Federal Milk Market Administrator Prices, Central Federal Region.
- USA Class IV: Class IV milk is used to produce butter and any milk in dried form. Even though only 13.2% of USA milk solids are exported, it should be noted that 45% of USA Shim Milk / Non-Fat Dry Milk is exported. The price is calculated as follows: Class I price = (Class IV skim milk price x 0.961) + (Class IV butterfat price x 3.90). Data Source: USDA Prices.
- Russian Farm Gate Price: Price displayed is indicatory only as Russian milk can vary in composition. Typically a 3.4% B/Fat and 3.0% Protein Standard may be used. (Note: The Russian standards differ from the Agriland Farmgate Standard of B/Fat 3.90% & 3.35% Protein. Using Irish Protein & B/Fat standards, these prices would be higher. Consequently this price is included for indicatory purposes only). Milk Price Data Source: Ministry for Agriculture of the Russian Federation.
- IFCN World Milk Price Indicator: This price is taken from the published IFCN World Milk Price Indicator. This price is calculated to represented weighted average of 3 IFCN world milk price indicators: 1. SMP & butter (35%), 2. Cheese & whey (45%), 3. WMP (20%), using a 4% fat and 3.3% protein average. (Note: These standards differ slightly from the Agriland Farmgate Standard of Butterfat 3.90% & 3.35% Protein. Consequently this price is included for indicatory purposes only). Data Source: IFCN Network