Domestic milk intake by milk processors and co-ops was down 1.6% - 19.1 million litres - year on year in May, according to latest analysis from the Central Statistics Office (CSO).
Estimates suggest domestic milk intake in May 2026 was 1.16 billion litres - which is 5.1% or 56.9 million litres - higher than it was in May 2024.
The CSO carries out a monthly survey of milk processors and co-ops to gather data on monthly collection and use of cow’s milk by the dairy sector.
The key findings highlight a trend which has emerged in recent months of a drop in monthly domestic milk intake.
According to the CSO from January to May 2026, domestic milk intake was estimated at 3.55 billion litres - which represented a fall of 25 million litres (-0.7%) when compared with the same period in 2025.
However when the intake from January to May 2026 was compared to the same period in 2024 it was up 228.1 million litres (+6.9%).
According to Stephanie Kelleher, statistician in the agriculture section of the CSO, fat content for May 2026 milk was 4.10% - up from 3.98% in May 2025.
Kelleher added: "Protein content also rose from 3.47% to 3.51% in the 12 months to May 2026.
"Butter production in May 2026 was 35,900 tonnes, up from 34,400 tonnes in May 2025".
Analysts from Rabobank warned last month that shrinking profit margins means that milk supply growth is "no longer economically viable" for Irish farmers.
Analysts cautioned that rising costs and tightening returns are undermining the case for further expansion across the sector.
Because milk prices have fallen below the cost of production margins are under increasing pressure and this, according to Rabobank, will ultimately have a knock on effect on supply.
In its latest Global Dairy Quarterly report, Rabobank analysts highlighted that currently EU milk supply is still strong but it is beginning to level off.