Irish milk production continued to climb in July

Irish milk production continued to climb in July of this year, the latest figures on milk production from the Central Statistics Office (CSO) show.

In the month of July, Irish creameries collected over 788.3m litres of milk from Irish dairy farms, an increase of 2.5% or 19.4m litres on the same month last year.

The total volume of milk sold for human consumption also jumped by 3.2% to 44.6m litres, while butter production declined by 14.7% to 19,300t.

CSO milk production

Official figures also show that milk production increased considerably during the first seven months of the year.

Between January and July, Irish creameries collected 4,386.4m litres of milk, up 8.8% from the 4,031.4m million litres produced during the corresponding time in 2015.

Improvements in July milk price

Earlier this month, a number of Irish dairy processors moved to increase the milk price paid for July milk supplies by 1-1.5c/L.

Dairygold confirmed that it would raise the July milk price by 1.5c/L to pay 24c/L, while Glanbia member supplies were to be paid 23c/L for manufacturing milk, a 1c/L rise on the June milk price.

Other processors, including Lakeland Dairies and Arrabawn Co-op also increased the base milk price by 1c/L to 24c/L and 24.25c/L respectively.

However, Kerry decided to maintain its milk price at June levels of 22.5c/L.

‘Markets support an August milk price of 25-28c/L’

The current level of the Global Dairy Trade (GDT) indicates that milk price should be in the 25-28c/L band for August, according to the Chairperson of the ICMSA Dairy Committee, Gerald Quain.

“The GDT weighted average price was US$2,731 in the last auction, the prices being paid by Irish Co-ops in October 2015 was between 25-28c/L.

“And, in July 2012, it was 28-31c/L and those were the two last occasions that the GDT was at the US$2,740 range.

“Even taking account of the fact that we are coming out of a market slump and even factoring-in forward contracts, ICMSA thinks it perfectly legitimate for Irish milk suppliers to expect that Ornua and our dairy processors can deliver a price in the lower band of 25-28c/L for August with further improvements going into September,” he said.