Irish processor milk prices are “bumping along the bottom” compared to international prices, according to Irish Creamery Milk Suppliers’ Association (ICMSA) dairy committee chair, Noel Murphy.
Murphy said that the beginning of a new year is a “good time” to evaluate how Irish operations compare.
He said that Irish milk prices took a “savage cut” in the first half of 2023 that reflected cuts in international markets, but Ireland’s “export-facing dairy sector” made it more vulnerable than producers with massive domestic demand.
According to the EDF-ZuivelNL International Milk Price Comparison, the 12 month rolling average price for all dairies from November 2023 was 45.70c/kg.
The highest prices for dairy over the 12 month period were for Capsa Food at 53.14c/kg; Valio at 52.41c/kg; and Hochwald Milch at 50.15c/kg.
The bottom prices included Dairygold at 39.42c/kg; Kerry Agribusiness at 40.14c/kg; and Tirlán 40.18c/kg.
Milk prices
The highest milk prices were produced by Capsa Food at 49.32c/kg; Valio at 46.46c/kg; and Sodiaal at 45.96c/L.
Dairygold was at the bottom position for milk price, with a price of 36.15c/kg, followed by Tirlán at 36.22c/L.
“The consequence of this difference is very serious for an Irish milk supplier supplying 400,000 litres amounting to approximately €20,000 of a loss between the EU average and the highest paying Irish co-op in the league in 2023.
“Bumping along at the bottom of the milk price league is bad enough; bumping along at the bottom when the farmers supplying you are paying amongst the highest inputs is an altogether different kind of failure,” Murphy said.
He added that it’s “not good enough” to see Irish processors at the bottom of the table and that he expects to see the “big three” Irish processors climb up in prices this year.
“Or the suspicions will grow that the farmer-suppliers are subsidising everyone else in the Irish dairy supply chain,” Murphy said.