Which processor topped the table for milk prices in 2022?

Analysis conducted by the Irish Creamery Milk Suppliers’ Association (ICMSA) has revealed that Drinagh lead the Irish co-ops for milk prices in 2022.

The analysis was completed using the Milk Price Tracker – brought to you by Agriland and the ICMSA – which details the milk prices for the most significant Irish dairy co-ops on a monthly basis.

Milk prices

2022 was an unprecedented year for milk prices paid to Irish dairy farmers, however it was against the backdrop of high input costs on farms.

Many farmers achieved base milk prices that they never expected to see, especially in the early stages of 2022.

2022 was a reasonable year for dairy farmers, but the extra cost associated with producing a litre of milk must be taken into consideration.

The outlook for milk prices for the early stages of 2023 is for base prices to fall – reducing the margin for dairy farmers.

The analysis determined that Drinagh offered at the highest average milk price to its suppliers in 2022.

The analysis is based on average milk prices paid by the co-ops and available bonuses that are outlined later in this article.

The Carbery group co-ops dominated the top four positions on the table, it is not until fifth place on the table before we leave west Cork and find Tirlán.

Tirlán was closely followed by Dairygold in sixth, with Lakeland ranking seventh for milk prices in 2022.

The co-op that offered the lowest milk price in 2022 according to the analysis, was Boherbue.

2022 review

The table below details analysis of a farm, with prices based on solids of 3.3% protein and 3.6% butterfat.

The prices and revenue are based on a 400,000L supplier, following the weighted percentage of milk supplied to co-ops in 2022.

The somatic cell count (SCC) was assumed at 150,000 cells/ml, total bacterial count (TBC) at 10,000 cells/ml, lactose at 4.6% and thermoduric at 100 cells/ml.

All the bonus and penalty payments are based on manufacturing milk.

The below table outlines the volume of milk supplied to the co-op each month in 2022.

Commenting on the analysis, ICMSA president, Pat McCormack, said that for farmers, information is power, and this is never more true than in the intricacies surrounding milk price.

“ICMSA and Agriland had invested huge resources around establishing the most complete and nuanced picture of milk prices to be found and then conveying that information in a free, open, and understandable way to Irish milk suppliers,” McCormack said.

“It was a matter of legitimate pride that ICMSA and Agriland’s Milk Price Tracker is now accepted as the industry standard metric, and Ireland’s dairy farmers were now in the unique position of being able to see and calculate, at a glance, what they would have been paid for the annual production by every co-op and processor in the state.

“Our opinion is that the best way of ensuring fairness and managerial competence is exactly this kind of transparency and easy-to-use comparative tool, so we’re constantly refining and looking for ways to develop.

“Obviously, the missing component in all these measures and metrics is the corresponding cost or input side, but certainly farmers – and any other invested commentators – will be able to differentiate the kind of gross figures we are seeing here, to the kind of figures we’d arrive at net of inputs,” McCormack added.    

Information on processors

The notes below outline what has been included as available bonuses within the figures for each of the individual co-ops:

Arrabawn

• An input support payment from August to December of 1.422c/L (excl. VAT);
• 0.2c/L (excl. VAT) bonus on all milk with an SCC less than 200,000 cells/ml.

Aurivo

• 0.21c/L (excl. VAT) protein bonus available for every 0.05% protein achieved, above the co-op average protein, in an individual month;
• 1.5c/L (excl. VAT) early calving bonus on all February milk;
• 1.4c/L (excl. VAT) early calving bonus on all March milk.

Carbery Group

• 0.5c/L (excl. VAT) from March to October and a 0.88c/L (excl. VAT) bonus from November to February to suppliers who achieve a SCC of less than 200,000 cell/ml;
• 0.5c/L sustainability bonus to farmers who have committed to Carbery’s FutureProof programme. This was paid on all milk supplied in 2022 to farmers who have signed a sustainability pledge and agreed to undergo an ASSAP water quality assessment;
• Carbery are paying 1c/L bonus on all milk supplied in 2022.

Dairygold

• 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 (excl. VAT);
• 3c/L (excl. VAT) early calving bonus to all members that meet the quality criteria in January;
• 2c/L (excl. VAT) early calving bonus to all members that meet the quality criteria in February;
• 1c/L (excl. VAT) early calving bonus to all members that meet the quality criteria March;
• 1c/L (incl. VAT) all milk supplied in 2022.

Kerry Group

• 0.4c/L (excl. VAT) bonus on all milk with an SCC less than 200,000 cells/ml and 0.1c/L (excl. VAT) for SDAS;
• As part of their ‘leading milk price’ commitment, the following payments were made:
  • 0.69c/L (incl. VAT) on all milk from January to June;
  • 1.5c/L (incl. VAT) on all August milk;
  • 2c/L iIncl. VAT) on all September milk;
  • 1c/L (incl. VAT) on all October milk;
  • 1c/L (incl. VAT) on all November milk;
  • 1c/L (incl. VAT) on all December milk.

Lakeland Dairies

• 4.73c/L (excl. VAT) bonus if more than 45% of May milk production was supplied in January, February, and December. This did not qualify in this scenario due to the volumes supplied;
• 2.84c/L (excl. VAT) bonus if more than 50% of May milk production was supplied in November. This did not qualify in this scenario due to the volumes supplied;
• 1.422c/L (excl. VAT) Input Support Payment for August through December;
• 0.6c/L (incl. VAT) paid on all milk supplied in 2022;
• 0.28c/L (incl. VAT) lactose bonus.

North Cork

• 0.2c/L (excl. VAT) bonus on all milk with an SCC of less than 200,000 cells/ml;
• 2c/L (excl. VAT) bonus on all milk including fixed price contracts for January through December;
• 1c/L (excl. VAT) input support payment for September through December.

Strathroy

• 0.25c/L (excl. VAT) bonus on all milk with an SCC of less than 200,000 cells/ml;
• 0.25c/l (excl. VAT) bonus on all milk with an TBC of less than 10,000 cells/ml.

Tipperary

• 0.25c/L (excl. VAT) on all milk with an SCC less than 250,000;
• 3c/L (excl. VAT) bonus if more than 10% of May milk production was supplied in January. This criterion was fulfilled in this scenario;
• 3c/L (excl. VAT) bonus if more than 15% of May milk production was supplied in February. This criterion was fulfilled in this scenario;
• Tipperary pays a 3c/L (excl. VAT) unconditional winter bonus for November milk;
• Tipperary pays a 3c/L (excl. VAT) unconditional winter bonus for December milk.

Tirlán

• 6.16c/L (excl. VAT) Agri Input Price payment on all milk for September through December including fixed milk contracts;
• 5.69c/L (excl. VAT) Agri Input Price payment on all milk for July and August including fixed milk contracts;
• 4.74c/L (excl. VAT) Agri Input Price payment on all milk for May and June including fixed milk contracts;
• 2.84c/L (excl. VAT) Agri Input Price payment on all milk for April including fixed milk contracts;
• 3.79c/L (excl. VAT) unconditional Seasonality Bonus that is paid on milk supplied in January;
• 2.84c/L (excl. VAT) unconditional Seasonality Bonus that is paid on milk supplied in February;
• 0.47c/L (excl. VAT) Sustainability Action Payment paid monthly on all milk supplied in 2022;
• 3.79c/L (excl. VAT) unconditional Seasonality Bonus that is paid on milk supplied in December;
• 1c/L (incl. VAT) on all milk supplied in 2022.

While there is potential for marginal errors in the data, the table is considered the most transparent and up-to-date picture of milk prices at co-ops across the country.