Barryroe lead West Cork clean sweep

By Pat O'Keeffe

Barryroe co-op paid the highest average price for manufacturing milk in Ireland last year.

The West Cork co-op paid an average price of 24.11cent/litre (c/l), after the deduction of collection charges and levies. Their net price was 0.15c/l ahead of neighbouring Bandon.

Barryroe was the only processor to pay a net price of more than 24c per year and their price was 1.75c above the average for the 14 processors who participated in the review of 2009 milk prices performed by KPMG.

The Irish Farmers Journal KPMG milk price review examines the payments made for manufacturing milk by 14 of Ireland's main milk processors, accounting for 4,003,307,479 litres of milk.

It is the fifth time that Barryroe have led the milk price review since 1992, but their first time at the price pinnacle since 2000.

The average net price paid by 14 processors for milk last year was 22.36c/l, after deduction of levies and charges. The 2009 average net price was 9.8c/l, or 30%, less than the average price paid in 2008. In fact, the bottom price in 2008 was 4.93c better than the top price in 2009.

In 2009, the gap between the top and bottom net price was 3.33c/l, considerably lower than 2008's gap of 5.69c/l.

The value of the milk produced by a 5,000 litre cow last year averaged €1,118, with a range from just €1,039 in Monaghan to €1,206 at Barryroe.

In the previous year, a cow with similar yield supplying the average processor would have generated €1,608, or €490 more per cow.

Compared with the average, Barryroe's price superiority was worth €87.50 per 5,000 litre cow over the course of the year, or €5,250 for a 60 cow herd (Figure 1). Barryroe's price was €167 per cow higher than Town of Monaghan co-op.

The four West Cork co-ops, who supply their milk to Carbery Milk products at Ballineen, dominated the top four positions in the 2009 milk price review. They paid an average price of 23.79c/l, which was 1.4c/l more than the average for the plcs, Glanbia and Kerry (22.39c/l). The four 'West Corks' paid 1.83c/l more than their neighbouring Cork co-op, Dairygold.

After West Cork, cheesemaking co-ops Newmarket and Wexford were next in line, paying a net price of just over 23c/l.

They were followed by Ireland's largest processor, Glanbia, who slipped from fifth in 2008 to seventh last year. They were 0.8c/l ahead of fellow plc, Kerry Group, who paid a net price of just under 22 cent per litre. Kerry were only 0.03c ahead of Ireland's largest co-op, Dairygold.

Tipperary, who joined the milk price review in 2008, maintained their relative position in tenth.

The bottom four consisted of Lakeland, Connacht Gold, Arrabawn and Monaghan. Lakeland pipped Connacht Gold by just 0.01 to take 11th place, while Arrabawn were 0.10 ahead of bottom-placed Town of Monaghan.

Average milk fat content last year, at 3.84%, was marginally up on the previous year (3.82%).

Average milk protein content was marginally down from 3.35% in 2008 to 3.33% last year. Wexford had the highest milk fat, at 3.92% and the highest protein, at 3.39%. Town of Monaghan had the lowest fat (3.74%) and the lowest protein (3.21%).

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