Milk production continued to climb in August
Irish dairy farmers continued to increase the volume of milk they produced on their farms during the month of August.
The latest figures from the Central Statistics Office (CSO) show that Irish creameries collected 706.5m litres of milk last month, an rise of 1.8% or 12.5m litres on the same month in 2015.
The figures from the CSO show that 44.8m litres of milk were sold for human consumption, up 2.9% on 2015 volumes, while butter production dropped 8% to 18,600t.
Official figures also show that milk production increased considerably during the first eight months of the year.
Between January and August, Irish creameries collected 5,084.7m litres of milk, up 7.6% or 359m litres from the 4,725.3m litres produced during the corresponding time in 2015.
‘Co-ops will be in a position to pay 30c/L next spring’
Ireland’s dairy co-ops will be in a position to pay a minimum milk price of 30c/L (inc VAT) next spring, according to IFA National Dairy Chairman Sean O’Leary.
“The milk prices should start to strengthen during the last quarter of this year. And this process should continue on into the New Year,” he said.
O’Leary suggested that multiple indicators are now confirming that the dairy market recovery is very much underway.
EU and global output are back while demand is picking up in China and other markets.
“The industry must make every effort to leverage the best possible returns over the coming months, and to pass back every last possible cent to help farmers deal with their cash flow crisis,” he said.
August milk price increases
A number of creameries moved to increase the price paid for August supplies by between 1-2.5c/L.
Kerry had increased its milk price for August supplies by 2.5c/L, while Lakeland Dairies moved to rise the base price by 1c/L. This put both processors on a base price of 25c/L.
Glanbia member supplies were also paid 25c/L for August supplies, which included a 2c/L Glanbia Co-operative Society support payment to its members.
Glanbia Ingredients Ireland (GII) had also increased its base price by 2c/L to 23c/L including VAT for manufacturing supplies at 3.6% fat and 3.3% protein.