Milk Price Tracker: Price increases across the board, but who is top of the table?

The latest Milk Price Tracker – brought to you by AgriLand and the Irish Creamery Milk Suppliers’ Association (ICMSA) – details milk prices from the most significant Irish dairy co-ops for the month of February.

For each co-op, a green arrow indicates an increase in base milk price (compared with the previous month); a blank space signifies no change; and a red arrow indicates a drop in base milk price.

It is important to note that the cent-per-litre (c/L) milk prices – shown in the table below – are calculated using the widely-accepted milk pricing system (an approach employed by most Irish co-ops).

It should also be noted that, when calculating the base prices (on a c/L basis), we have used a fixed mass density factor – to convert from kilograms (kg) to litres (L).

The conversion factor used is 1.03. In other words, 1L of milk corresponds to 1.03kg of milk.

Moreover, the Irish c/L milk prices – quoted in the table – are base prices at the ‘standard’ fat and protein percentages cited by the vast majority of co-ops (i.e. 3.3% protein and 3.6% fat).

We also include base prices at ‘standard’ European criteria (i.e. 3.4% protein and 4.2% fat).

Furthermore, there is a column detailing what we describe as the ‘maximum attainable price’ – which is based on consistent levels of 3.3% protein and 3.6% fat.

February 2021 Prices

The milk prices in this table (below) are those quoted by co-ops for the month of February (2021).

All bonus and penalty payments are based on manufacturing milk. The VAT rate changed from 5.4% to 5.6% as per Budget 2021.

With regard to Milk Price Tracker (above), please see these explanatory notes:

All bonus and penalty payments are based on manufacturing milk;
Arrabawn pays a 0.2c/L (ex VAT) bonus on all milk with a somatic cell count (SCC) less than 200,000;
Aurivo has a milk storage bonus which is available to suppliers with a minimum annual supply of 160,000L that have enough refrigerated storage capacity to cover seven milkings at peak production; Aurivo also has a 0.22c/L (ex VAT) protein bonus available for every 0.05% protein achieved, above the co-op average protein %, in an individual month;
Aurivo is paying 1.5c/L (ex VAT) early calving bonus on all February milk;
Carbery Group pays a bonus of 0.5c/L (ex VAT) from March to October and a 0.88c/L (ex VAT) bonus from November to February to suppliers who achieve a SCC of less than 200,000;
Carbery Group is no longer paying 1c/L (ex VAT) from its stability fund;
Dairygold applies no penalties to total bacteria counts (TBCs) of less than 75,001 in the months of January, February, November, and December. Penalties will apply to TBCs more than 75,000 in those months;
Dairygold has a 0.25c/L included and 0.1c/L for the Sustainable Dairy Assurance Scheme (SDAS), 0.1c/L for sign-up to milk recording (four per year) and 0.05c/L for sign-up to milk recording and a Munster Bovine herd health scheme; Dairygold also has a 0.04c/L maximum bonus attainable by farmers who achieve the minimum requirements for six criteria (TBC, thermoduric, sediment, SCC, lactose and inhibitors); This cumulatively amounts to 0.65c/L (ex VAT);
Dairygold is also paying a 2c/L (ex VAT) early calving bonus to all members that meet the quality criteria;
Glanbia includes 0.4c/L (ex VAT) payment on all milk supplied as a ‘Share of GI Profit’. Glanbia is also paying a 2.84c/L (ex VAT) seasonality bonus to all members for February milk;
Kerry pays 0.4c/L (ex VAT) bonus on all milk with an SCC less than 200,000 and 0.1c/L (ex VAT) for SDAS;
Lakeland pays 5c/L (ex VAT) bonus on February milk if more than 45% of May milk production for milk supplied in February. Lakeland also continued a 1c/L (ex VAT) flat bonus payment for February milk;
North Cork pays 0.1cpL (ex VAT) bonus on all milk with an SCC of less than 200,000. North Cork is paying 0.5c/L (ex VAT) bonus on all February milk;
Strathroy pays 0.25c/L (ex VAT) bonus on all milk with an SCC of less than 200,000. Strathroy also pays 0.25c/L (ex VAT) bonus on all milk with a TBC of less than 10,000;
Tipperary pays a bonus of 0.25c/L (ex VAT) on all milk with an SCC less than 250,000 and pays a 3c/L (ex VAT) bonus for February Milk if more than 15% of May milk production was supplied in February.