Milk Price Tracker: Which co-op is top of the table for January's supply?

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 January.

The ‘new look’ Milk Price Tracker for 2021, has been revised slightly to make it easier for milk suppliers to review prices at their local co-ops.

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.

January 2021 Prices

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

Arrabawn pays 0.2c/l bonus on all milk with a somatic cell count (SCC) less than 200,000;
Aurivo has a milk storage bonus available to suppliers with minimum annual supply of 160,000L with enough refrigerated storage capacity to cover seven milkings at peak production;
Aurivo has 0.22c/L protein bonus for every 0.05% protein achieved above the co-op average protein percentage, in an individual month;
Carbery Group pays 0.5c/L bonus from March to October and 0.88c/L bonus from November to February to suppliers who achieve SCC of less than 200,000;
Carbery Group pays 1c/L from its stability fund, which is included in its A and B price;
Dairygold has 0.25c/L (excl. VAT) sustainability bonus which includes 0.1c/L for the Sustainable Dairy Assurance Scheme (SDAS); 0.1c/L for sign-up to milk recording (4 per yr) and 0.05c/L for sign-up to milk recording and a herd health scheme with Munster Bovine;
Dairygold also has 0.4c/L (excl. VAT) maximum bonus attainable for farmers who achieve minimum requirements for six criteria (TBC; thermoduric; sediment; SCC; lactose; and inhibitors); This cumulatively amounts to 0.69c/L incl. VAT;
Dairygold also pays 3c/L early calving bonus to members who meet quality criteria;
Glanbia includes 0.42c/L payment on all milk supplied as a ‘Share of GI Profit’ and pays 4c/L seasonality bonus to members for January milk;
Kerry pays 0.4c/L bonus on all milk with SCC less than 200,000 and 0.1c/L for participation in SDAS;
Lakeland pays 5c/L bonus on January milk if more than 45% of May milk production was supplied in January. Lakeland also continued 1c/L flat bonus payment for January milk;
North Cork pays 0.1c/L bonus on all milk with SCC less than 200,000 and is paying 0.5c/L bonus on all January milk;
Strathroy pays 0.25c/L bonus on all milk with SCC less than 200,000 and 0.25c/L bonus on all milk with TBC less than 10,000;
Tipperary pays bonus of 0.25c/L on milk with SCC less than 250,000 and 3c/L bonus for January milk if more than 10% of May milk production was supplied in January.