West Cork lead the way

By John Boylan

It is a tribute to the efficiency and marketing policy of the Carbury plant that the four West Cork co-ops led by Barryroe capture first four places in the league in January.

Or perhaps it is the ethanol manufactured in Carbury that is linked to the price of the barrel of oil which is giving them the edge that puts them top of the table.

Their creameries lead the field with Barryroe paying 37.66c/l plus vat, Drinagh paid 37.49c/l, Bandon with 37.40c/l and Lisavaird paying 37.29c/l.

These are followed closely by Monaghan who is paying 37.29c/l, Centenary/Thurles paying 37.09c/l, Dairygold with 37.08c/l and Dairygold at 37.05c/l.

Kerry tops the second division paying a price of 36.91c/l, with Boherbue on its heels at 36.91c/l. Boherbue are top of the average creamery price at 40.16c/l. This reflects the high constituents of Boherbue suppliers.

Donegal where all information is kept locked away from their suppliers comes in for relegation even though their high level of butter fat brings up their creamery average price to second paying 40.15c/l this month.

Glanbia to hold March price

The board of Glanbia decided to hold the milk price at 37c/l for March and its MD John Maloney sees milk price in Ireland a "bit ahead'' of 2007 prices with a minimum of 32-33c/l likely to be paid this year.

Earling calving bonus

They are also going to introduce a 4c/l early calving bonus for January and February 2009. This will help to spread their peak to trough ratio while expanding in future.

It will also help to supply their growing fresh product market. Glanbia's revenue was up 19% to €2.2bn and operating profit up by 35% to €115.8m. The Irish operation performed much better than their joint ventures in the US because they were able to pass on the increased costs much faster here.

It's not surprising that the IFA claim that Co-ops can easily afford to pay more.

Price volatility

Today it is cheese and fresh products that are holding their prices while butter and powder is harder to sell.

The co-ops producing the broadest range of products that have the ability to switch product to match the market price fluctuations will be the winners in future.

This will create a climate for rationalisation more rapidly than is envisaged at present. The difference in product range between Glanbia and Lakeland may become very noticeable this year.

Irish Dairy Board

The Irish Dairy Board is overweight in stocks at present. More product should have been sold last autumn when prices were buoyant. This seems to be a strange time for the Irish Dairy Board to stop publishing their on account prices, the more volatile the market the more important it is to have visibility.

Will this cause distortions for Wyatts and Abbots who based their price on the published price? This is a time for openness and transperancy not a time for rumour and scaremongering.

Irish Farmers' Journal Milk League Tables

If you would like to view the Irish Farmers Journal Milk League tables dating back to 2000 click on the relevant month and year. N/A indicates that no Milk League is available for a particular month.

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